Indian rupee trading at 61.07/08 versus Friday's close of 61.18/19, but off session low of 60.8750 on the back of heavy US dollar demand from oil refiners.
Pair had dropped early on tracking dollar's losses versus other Asians and stronger equities.
The pair is seen in 61.00 to 61.20 range during the rest of the session. Live updates: Indian rupee vs US dollar, others
Nifty trading up 0.6 percent and seen limiting any sharp gains in the pair.
RBI policy review on Tuesday to be key for near-term cues.
Rates seen on hold at policy.