Traders said a large foreign bank was spotted selling dollars, amounting to around $250 million, for investment intended into government bond markets.
The focus will shift to global factors, including the release of the minutes of the U.S. Federal Reserve policy meeting in July later in the day and the annual gathering of policymakers and central bankers in Jackson Hole, Wyoming, later this week.
"Inflows into the debt market are continuing and that should keep the rupee bias positive. Overall, the sentiment on India remains optimistic," said Subramanian Sharma, director at Greenback Forex.
"We will not see the rupee gain much above 60 levels as there will be buying seen at every opportunity whereas exporters will come in to sell around 62. I expect the unit to hold between 60.50 and 61.80
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