The rupee is trading at 60.28/29 after opening at 60.30 per dollar. The Indian unit closed at 60.23/24 on Tuesday.
Concerns over escalating tensions in Ukraine sapped enthusiasm for emerging market assets on Wednesday.
The rupee is expected to move in the 60.20 to 60.60 range for the day.
Indian shares opened flat on Wednesday as foreign institutional investors continue sales in cash shares and equity derivatives.
A higher-than-expected consumer price inflation data largely priced in, traders say, but markets cautious on FII flows.
Traders also cautious after data showed that overseas investors sold Indian shares worth of 216.3 million rupees ($3.59 million) on Tuesday -- the second straight session of outflows.
Foreign investors have also been sellers of debt this month, with outflows of $576.59 million till April 12, regulatory data showed.