The rupee is trading at 60.05/06, falling from the session high of 60.00 after suspected dollar buying by state-run banks on behalf of the Reserve Bank of India, say dealers. The rupee had closed at 60.0850/0950 on Friday.
Demand for the dollar from oil refiners looking to meet month-end demand is also expected to limit any sharp downward pressure on the USD/INR pair.
USD/INR had earlier been under pressure in line with gains in other Asian currencies due to views that the US Fed is unlikely to raise interest rates soon after disappointing economic data.
The rupee is seen holding in a 59.80 to 60.20 range during the session.