Indian rupee trading at 60.54/55, off the session high of 60.68 and versus Monday's close of 60.5250/5350.
Traders say gains in the domestic share market hurting sentiment for the pair. Nifty up 0.8 percent.
Most Asian FX, however, trading weaker against the dollar, limiting a further fall in the pair. Full Coverage: Indian rupee vs US dollar, others
Dollar inflows also low following the U.S. Labor Day holiday on Monday.
USD/INR seen in a 60.50-60.75 range during the day.