MUMBAI, April 3 Reuters The Indian rupee was little changed on Wednesday as dollar demand from domestic corporates ate into slight early gains supported by dollar inflows.

The rupee was at 83.40 against the U.S. dollar as of 1040 a.m. IST, barely changed from its close at 83.3850 in the previous session. The currency inched up in early trade to a high of 83.36 but soon pared those gains.

The dollar index was at 104.7 after declining 0.2 on Tuesday, while Asian currencies were mixed.

It looks like the rupee will weaken further from here unless the Reserve Bank of India RBI steps in to supply dollars, a foreign exchange trader at a foreign bank said.

The rupee had fallen to a record low of 83.45 last week, prompting the central bank to intervene, traders said.

The RBI has intervened to accumulate FX reserves meaningfully this year, but was surprisingly more handsoff when INR was selling off, perhaps indicating some desire to prevent excessive INR outperformance against a basket of currencies, MUFG Bank stated in a April 3 note.

India39;s foreign exchange reserves rose to a record high of 642.63 billion as of March 22, according to data released by the central bank.

Brent crude oil futures rose above 89 per barrel on Tuesday for the first time since October on concerns around supply being threatened by geopolitical conflicts.

U.S. bond yields also rose after data showed that new orders for U.S.manufactured goods grew more than expected in February.

The 10year U.S….