The Indian rupee closed nearly flat on Wednesday even as dollar demand from local oil companies and other importers put pressure on the currency but likely intervention from the Reserve Bank of India helped avert a drop towards its all-time low.

The rupee ended at 83.5450 against the U.S. dollar, little changed from its previous close at 83.5650. The currency had hit its all-time low of 83.5750 on April 19.

The RBI likely intervened in the non-deliverable forwards market before the local spot market opened and state-run banks were also seen selling dollars during the spot session, likely on behalf of the central bank, traders said.

The rupee hovered in a tight band through much of the day's session but exporter dollar sales towards the end of the session helped the currency inch up, a foreign exchange trader at a private bank said.

The currency quickly shed the gains though as the dip in the dollar-rupee pair spurred buying interest, the trader added.

The dollar index was slightly lower at 105.2, while Asian currencies were mostly rangebound heading into the release of closely watched U.S. inflation data and the Federal Reserve's policy decision, both due later in the day.

While the Fed is widely expected to keep policy rates unchanged, attention will be on Chair Jerome Powell's commentary and any changes to the interest rate dot plot.

Interest rate futures are currently pricing in 39 basis points of rate cuts over 2024.

Technical indicators on the dollar-rupee pair indicate that a move towards 83.80 is likely once the 83.60 level is breached, Dilip Parmar, a foreign exchange research analyst at HDFC Securities, said.

India's consumer inflation, data for which will be out later in the day, likely picked up to 4.89% last month from April's 4.83%, according to economists polled by Reuters. (Reporting by Jaspreet Kalra; Editing by Sohini Goswami)