mumbai april 12 reuters  the indian rupee held a narrow range against the us dollar on wednesday as caution prevailed ahead of an inflation report that would influence the federal reserves next policy move the rupee finished at 820775 per dollar compared with 821250 in the previous session the currency traded in a narrow 10 paisa range as traders kept positions light heading into the release of the critical march us consumer price index cpi data the core cpi likely rose by 04 monthonmonth in march according to economists polled by reuters that would be down from the 05 increase in february but well above the pace required for bringing annual inflation to feds 2 target this will probably bolster expectations of a 25 basispoint bps hike by the fed in may following a strong jobs report last week said a private bank trader those bets were currently near 74 according to fed funds futures despite fairly subdued markets in the runup to fed minutes and cpi there is every chance of swings one way or another on outcomeexpectations gap mizuho bank analysts wrote in a note the dollar index hovered near tuesdays lows while most asian currencies rose slightly minutes of the feds march meeting where it hiked rates but sounded dovish are also due later in the day the hike was interpreted as possibly the last one given the banking turmoil however a calming of the crisis and strong data since then has caused market repricing of the fed peak rate meanwhile indias inflation data reading is likely to show headline cpi eased in march to 580 dipping below the reserve bank of indias upper tolerance limit of 6 for the first time this year according to a reuters poll the data follows rbis surprise move last week to hold rates steady at 650