Indian rupee is trading flat against the US dollar on Thursday with expectations of higher for longer interest rates from the US Federal reserve. Sustained foreign fund outflows made investors cautious. Foreign Institutional Investors were net sellers in the capital markets as they offloaded shares worth Rs 4,424.02 crore on Wednesday, exchange data showed. Meanwhile, hopes of further interventions from the Reserve Bank of India and pullback in US Treasury yields have beneficial for domestic currency. Investors are now awaiting RBI's monetary policy decision on Friday.

The partially convertible currency is currently trading flat at its previous close of 83.24 on Wednesday. The currency touched a high and low of 83.2450 and 83.1650 respectively.