Traders also cited disappointment about the piecemeal approach to providing details after Finance Minister P Chidambaram on Monday unveiled a slew of broad measures to curb imports and attract capital inflows.
The government on Tuesday announced hikes in import duties for gold and silver, but it has yet to unveil other details such as its plan to tax imports of non-essential items.
Meanwhile, the Reserve Bank of India is expected to spell out how banks will be allowed to attract deposits from Indians abroad as also some liberalisation of overseas borrowing rules.
Unless policy makers can provide more details, sentiment will remain cautious, traders said.
"The structural issues like the high current account deficit remains unresolved. Until inflows actually start coming in, which could be over a period of six months, we will continue to see weakness," said NS Venkatesh, treasurer at IDBI Bank.
"The near-term weakness will continue and we may see 60.50 to 61.50 range holding for a bit. The market is shallow, there is a genuine demand,
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