The Indian rupee pared losses and settled on a flat note at 85.40 (provisional) against the US dollar in a volatile trade on Wednesday amid rising crude oil prices and a negative trend in domestic equities. Indian shares ended modestly lower on Wednesday, extending losses for a second straight session in the wake of fund outflows due to large block deals and increased primary market activity. The benchmark 30-share BSE Sensex dropped 239.31 points, or 0.29 percent, to 81,312.32 while the broader NSE Nifty index ended down 73.75 points, or 0.30 percent, at 24,752.45. Increased month-end dollar demand added strength to the American currency, keeping the local unit under pressure, while investors also moved cautiously awaiting cues from domestic macroeconomic data. India's industrial production data for April will be released later in the day, while the GDP growth figures for the first quarter of FY26 are scheduled to be announced on Friday. On the NSE, USDINR futures pair ended the day marginally lower at 85.57.