The rupee was trading at 60.70 versus Monday's close of 60.93/94 on the back of custodian and corporate dollar sales.
Traders expect the pair to face good support at 60.60 levels keeping it in a 60.60 to 61.00 range for the rest of the session.
RBI kept key policy rate unchanged but warned about inflationary risks should a shortfall in monsoon rains spark a surge in food prices.
Most other Asian currencies are also trading stronger compared to the dollar.
The BSE Sensex was trading up 0.5 per cent.
(With inputs from Reuters)
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