Caution persists due to the Iraq crisis as Brent crude prices remained steady above $113 per barrel as fears of oil supply disruptions from Iraq offset the possibility of increased supply due to a thawing of relations between Iran and the West.
Traders expect the Reserve Bank of India to step in to check any spikes in the pair. The rupee hit a near two-month high of 60.55 per dollar on Tuesday but scaled back after traders spotted dollar sales from the central bank through state-run banks.
The U.S. dollar held onto modest gains early on Wednesday, having risen broadly after U.S. consumer prices recorded their largest increase in more than a year in May.
Caution also prevails ahead of the outcome of the U.S. Federal Reserve's two-day meet that ends later in the day.
The partially convertible rupee is seen trading in a range of 60.02 to 60.40 during the session.