The Indian rupee ended mostly unchanged on Tuesday as dollar sales from state-run banks aided the local unit which has remained under pressure over the last few sessions amid elevated outflows from equities.

The rupee closed at 83.51 against the U.S. dollar, barely changed from its previous close at 83.53.

The dollar index at 105.2 while Asian currencies were largely muted as investors awaited U.S. inflation data to gauge what path the Federal Reserve's policy rates will take this year.

The rupee stuck to a tight band between 83.51 and 83.5225 during the day's session.

The Reserve Bank of India (RBI), via state-run banks, has likely been supplying dollars to nullify the impact of outflows, keeping the rupee in a narrow range, a foreign exchange trader at a foreign bank said.

The currency has managed to hold its ground even as foreign investors have pulled out $2.2 billion from Indian equities in May so far, prompted by concerns about the upcoming national election results on June 4.

Despite some near-term pressure, the rupee should continue in its 83.20-83.60 broad range, said Gaurang Somaiya, a foreign exchange research analyst at Motilal Oswal Financial Services.

Investors now await U.S. producer price inflation data and remarks from Fed Chair Jerome Powell due later in the day. U.S. consumer inflation figures will be released on Wednesday.

The inflation data will be a closely watched cue for expectations of when the Fed may begin to cut policy rates. The odds of a September rate cut currently stand at 65%, according to the CME's FedWatch tool. (Reporting by Jaspreet Kalra;Editing by Sohini Goswami)