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The rupee rises to as high as 60.51, its highest since April 21, after a large infrastructure development company was spotted selling dollars.
The rupee was last trading at 60.58/59, compared with its close of 60.60/61 on Friday after earlier falling to as low as 60.7450.
The infrastructure developer was seen selling dollars for a second straight session, traders said.
Further gains in the pair seen limited ahead of the U.S. Federal Reserve's two-day policy meet beginning Tuesday.