The rupee rises to as high as 60.33, its highest since July 31.
Last trading at 60.37/38 vs previous close of 60.68/69.
The dollar's fall comes after Ukraine said it has agreed on a ceasefire with Russia.
Traders say the 60.38 level is a crucial support for USD/INR pair.
RBI intervention eyed if the pair falls much beyond that support level.
Gains in domestic shares to record highs also aid sentiment for the rupee. Nifty trading up 0.2%.