MUMBAI, May 17 Reuters The Indian rupee was largely unchanged on Friday as dollar sales from staterun banks, likely on behalf of the Reserve Bank of India RBI, curbed weakness in the currency even as its Asian peers slipped.

The rupee was at 83.48 against the U.S. dollar as of 1040 a.m. IST, barely changed from its close at 83.50 in the previous session.

The RBI likely sold U.S. dollars near 83.50 levels to cap depreciation of the rupee, four traders told Reuters.

Interventions from the central bank have helped limit the weakness in the rupee over the last few trading sessions despite pressure from elevated outflows from Indian equities and dollar demand from local importers, including oil companies, traders said.

Foreign investors have sold 3.3 billion worth of Indian equities in May so far, the highest monthly outflow since January last year, amid nervousness about the upcoming outcome of the country39;s national elections.

While a large dollar inflow may cause some temporary appreciation in the rupee, it39;s likely to stay in the 83.4083.55 band till the election outcome, a foreign exchange trader at a staterun bank said. India39;s election results are due on June 4.

The dollar index rose 0.1 to 104.6, while Asian currencies weakened with the Korean won down 0.8 and leading losses.

Major Asian currencies had rallied on Thursday as softerthanexpected U.S. inflation data boosted hopes of rate cuts by the Federal Reserve but the rupee largely remained on the…