The rupee strengthened to its strongest level in a week and half on Wednesday as continued foreign fund inflows into the domestic share and debt markets aided while gains in other Asian units also helped.
Traders expect the rupee to remain wedged between the 59.60 and 60.50 levels in the absence of any key triggers in the near-term.
The next major event for financial markets in India is the Reserve Bank of India's monetary policy review on August 5.
The Nifty brose to a record high, gaining for a seventh straight session, led by technology stocks on continued buying by foreign-investors on a positive earnings outlook, while firm Asian markets also helped.
Overseas buying of shares and debt continued, taking total investments across the two segments to $24.7 billion so far in 2014.
"I believe 60.05 is going to be a crucial support for the USD/INR. It needs to be seen if this level can be broken, which can then take it to 59.77 or even 59.55,"