The Indian rupee likely to open sharply lower around 64.20 against US dollar as compared to 65.24/25 Friday close, tracking gains in risk assets as geopolitical risks on Syria recede and likely positive trade data.
Indian markets were closed on Monday for a local holiday.
India's merchandise exports posted double-digit growth in the month of August, while imports were "contained", Trade Secretary S. R. Rao said on Monday, offering some respite for the troubled rupee currency. Official data due later this week.
The euro held steady around a more than one-week high in early Asian trade on Tuesday, as risk appetite ticked up after a Russian proposal on Syria raised the chance that a U.S. military strike would be delayed or averted.
A dealer with a forex broking firm tips 64-65 range for session with upticks likely to be sold.