The spot rupee, which traded for a third straight session after being inactive for six weeks, ended at 153.30/35 per dollar, steady from Tuesday's close of 153.30/40.

The spot rupee started trading on Monday for the first time since May 5 when the central bank had fixed its reference rate at 152.50.

"The demand was there, but today there was some selling as well," said a currency dealer, requesting anonymity.

Dealers said they expect seasonal demand for dollars to pick up from August.

The central bank has set a target of $1.2 billion in direct market purchases of dollars to boost the island nation's reserves this year, mainly to achieve a target set by the International Monetary Fund in return for a three-year $1.5 billion loan.