The Rupee holds on to gains, last at 56.00/02 vs 55.74/75 close on Monday, after earlier hitting as much as 56.08, the highest since June 1.
Rupee gained as part of a global risk sell-off after details of the Spanish bank bailout renewed worries about the region's debt crisis.
Reports of official preparations for a Greek exit also kept investors nervous. The rupee is likely to face near-term resistance at 56.28, the June 1 high.
The rupee may not immediately breach record high at 56.52 hit on May 31, said traders.
Gains in pair are kept in check as India's main stock index Sensex advanced 0.3 per cent on rising hopes for a cut in both the repo rate and the cash reserve ratio at the RBI policy meeting on June 18.
