The gains were capped as domestic shares fell for a third consecutive session, retreating from record highs hit on Friday, as momentum waned ahead of the conclusion of general elections next month.
Until May 16, we will trade between 59.60 and 61.30 as market is positioning for rupee appreciation given the opinion polls outcome, and FII flows.The rupee closed at 60.42/43 per dollar compared with 60.6450/65 on Monday.
Large corporate dollar sales helped offset continued month-end demand for the greenback from oil companies.Global investors are largely awaiting the outcome of the two-day Federal Reserve's policy meeting on Wednesday, with the US central bank widely expected to continue paring back its bond-buying monetary stimulus.
The South Korean won hit a near six-year high on Tuesday, leading gains among emerging Asian currencies, though many investors stayed cautious ahead of major events this week including the Fed policy meeting.
In the offshore non-deliverable forwards, the one-month contract was at 60.74 while the three-month was at 61.53.