MUMBAI, Sept 4 Reuters The Indian rupee dropped to a record low near the close of trading on Wednesday after yet another rangebound trading session as it stayed wedged between negative global cues and support from the central bank.

The rupee hit a lifetime low of 83.98 to the U.S. dollar in the last minute of trade. It closed at 83.9650, versus its previous close of 83.9675, having stayed in a narrow threepaisa range throughout the session.

It is quite clear that the RBI central bank is defending the rupee, said a trader with a private bank. If it allows the rupee to go below 84, dollar bulls will be active and a move towards 84.25 will be quick.

Over the last month, there were several instances when the Reserve Bank of India intervened on both sides of the forex market to support the currency.

This has led to the rupee holding a narrow range for extended periods. It has stayed in a 20paisa range over the last month.

Meanwhile, the overnight weakness in U.S. equities, after data that indicated manufacturing activity remained weak, percolated to Asian and European equities.

The data has raised the odds of a 50basispoint rate cut at the Federal Reserve39;s Sept. 1718 meeting to 42 from 30, per the CME FedWatch Tool.

With the Fed39;s monetary policy meeting just a fortnight away, the market has already priced in a 25basis point rate cut, said Amit Pabari, managing director of CR Forex.

However, any further deterioration in the data could reignite concerns,…