* Rupee ends at 54.36/37 per dlr vs 54.2050/2150 on Wed
* Sentiment on rupee turns bearish, Reuters poll shows
* Nomura advises investors to short USD/INR via options in
By Subhadip Sircar
MUMBAI, Nov 8 The Indian rupee fell on Thursday,
snapping two sessions of gains, as euro zone concerns again took
centrestage with worries over whether Spain would seek a bailout
The rupee's gains from U.S. President's Barrack Obama's
re-election were wiped out as global stocks and the euro fell,
pulling down the local currency with it.
Local shares ended down 0.3 percent, ending a six-day
"We believe a lot of positive news has already been priced
in and we reduce our bias on short USD/INR into year-end," said
Vivek Rajpal, strategist at Nomura in Mumbai.
The investment bank expects the rupee to trade at 53 to the
dollar by end-December and advises investors to short USD/INR
through options in the near term.
The partially convertible rupee closed at 54.36/37
p er dollar, 0.3 percent weaker than its previous close of
Investors will closely watch how the government manages its
finances and whether it can push through key reforms on
insurance and pensions when parliament meets later this month.
The government is hopeful of containing its fiscal deficit
to 5.3 percent of GDP in this fiscal year, but a recent Reuters
poll pegs it at 5.8 percent.
Sentiment on the Indian rupee turned bearish once
again after some signs of optimism in the last two months, as
per a Reuters poll of currency strategists.
In the offshore non-deliverable forwards segment, the
one-month contract was at 54.62 while the three-month was at
In the currency futures market, the most-traded near-month
dollar/rupee contract on the National Stock Exchange and the
MCX-SX closed at around 54.55 with a total traded volume of $4.6
(Editing by Sunil Nair)