MUMBAI, Nov 1 (Reuters) - The Indian rupee fell to a record low in the last minute of trade on Wednesday, on the back of heavy demand for the greenback and elevated U.S. yields ahead of the Federal Reserve's rate decision due later in the day.

The rupee ended at a record closing low of 83.29 after touching a lifetime low of 83.2950 just before market close. It had ended at 83.25 on Tuesday and touched its previous low of 83.29 in October 2022.

The level was breached despite intermittent dollar selling by the central bank in recent sessions.

"The fact that the rupee hit a record low in the last few minutes of trade does not give enough room to form a convincing directional view on the rupee, for now, especially with the Fed decision today," said Ritesh Bhusari, joint general manager for treasury at South Indian Bank.

"We don't think that the central bank will loosen its grip on the currency, and it will continue to stay in a range."

Expectations that the Fed will keep interest rates high for longer have prompted a selloff in longer-maturity Treasuries and boosted the dollar.

The Fed is not expected to raise rates on Wednesday but there are bets of one more rate increase in December.

On Wednesday, there was heavy dollar demand from importers, corporates and foreign banks, likely on behalf of their custodial clients.

Foreigners have sold Indian equities worth about $2.95 billion in October after selling $1.7 billion in September, following a six-month buying streak.

Overseas investors have, however, net bought $11.7 billion of Indian shares so far this year, a turnaround from the nearly $12 billion of outflows recorded in 2022.

Most Asian currencies fell on Wednesday with the Korean won leading losses. The dollar index was higher at 106.88.

The rupee has outperformed its Asian peers during 2023 by wide margins on the back of strong economic fundamentals and central bank intervention.

It is quite likely the rupee won't open below 83.30 on Thursday, a forex trader at a private bank said.

"It doesn't seem like the RBI has let go entirely as they were still intervening in the non-deliverable forward market after the spot session ended."

The dollar/rupee's next resistance will emerge around 83.50-83.60 levels, while 83 will act as a major support level for the pair, traders said.

(Reporting by Jaspreet Kalra; Editing by Mrigank Dhaniwala and Swati Bhat)