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Indian Rupee traded flat against US dollar on Wednesday tracking firm domestic equities and expectations of likely dollar selling by the Reserve Bank of India (RBI) to support the rupee after its steep fall in the previous session, while the RBI has asked some large banks to refrain from large trading bets against rupee. RBI's rate-setting panel started its three-day deliberations for the next set of bi-monthly monetary policy amid expectations of status quo on benchmark interest rate in view of concerns on inflation and economic growth remaining steady. Strength in the American currency at overseas market, escalation of geopolitical tensions in the Middle East and outflows by foreign investors have added pressure on rupee to slide. Foreign Institutional Investors were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 3,531.24 crore, exchange data showed.

The partially convertible currency is currently trading flat at its previous close of 83.92 on Tuesday. The currency touched a high and low of 83.9275 and 83.86 respectively.