The rupee snapped a two-day slide on Tuesday helped by the dollar's fall overseas on soft US home sales data, but demand for the US currency from local companies eyeing month-end payments limited gains.
Traders said the Indian currency was likely to remain pinned in a range on Wednesday by more month-end purchases of the dollar unless the euro strengthened past $1.19 overnight.
The rupee gained 0.15 percent to close at 45.895/905 per dollar, off a session high of 45.8325. It ended Monday at 45.965/975 after slipping briefly beyond 46.00 and nearing a recent 13-month low.
"There wasn't as much selling (of dollars) as we had expected in the morning but having said that the demand too was quite moderate except for some month-end corporate and oil-related buying," a trader at a state-run bank said.