The partially convertible rupee almost breached the 60.19 level, last seen on April 23, tracking broader falls in Asian currencies.
Whether the dollar sustains those gains depends on US monthly jobs data due later in the day.
Strong US employment data would strengthen the case for an early interest rate hike by the Federal Reserve and could benefit the greenback at the expense of emerging currencies such as the rupee.
"The market was in a complacent mode with elevated asset prices and this is just a correction of the same," said Samir Lodha, managing director at QuantArtMarket Solutions, a currency advisory firm in Mumbai.
"If the US employment data turns out strong, we will see further
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