MUMBAI - The Indian rupee ended the session at its highest level in a month, on likely corporate dollar inflows and as the latest U.S. inflation data raised expectations of a pause at the Federal Reserve's policy decision later on Wednesday.

The rupee hit an intraday peak of 82.0825 per dollar, before ending at 82.0950, both of which are the highest since May 11. The rupee notched gains for a fourth consecutive session, rising 0.34% in the day, its best daily performance since June 1.

A large UK-based foreign bank sold dollars in the latter half of the trading session, possibly on behalf of a major telecom conglomerate, lifting the rupee towards 82.10, said Anil Bhansali, head of treasury at Finrex Treasury Advisors.

Apart from the corporate dollar inflows, the rupee was also helped by a smaller-than-expected rise in U.S. Consumer Price Index, affirming bets that the Fed will not hike policy rates at its meeting on Wednesday.

U.S. CPI recorded an annual increase of 4% on year in May, slowing from 4.9% in April.

After the CPI data, the odds of a Fed rate hike in this policy have fallen to just over 8% from 25% on Tuesday.

Even if the Fed were to keep rates unchanged, the commentary around the decision is likely to remain hawkish, ING Bank said in a note.

"Any hints that the Fed would continue to tighten after a pause would act as headwind for the rupee," said Sugandha Sachdeva, executive director and chief strategist at Acme Investment Advisors.

Ahead of the Fed's decision, the dollar index dropped to 103.141, extending Tuesday's decline. Asian currencies were mixed.

The rupee forward premiums fell marginally with the 1-year implied yield at 1.73% compared to 1.74% on Tuesday.

(Reporting by Siddhi Nayak; editing by Eileen Soreng)