* USD/INR ends at 53.80/81 vs prev close of 53.96/97
* Rupee falls 1.8 percent in October, snapping two
successive months of gains
* G20 summit over weekend will be watched for moves in
By Subhadip Sircar
MUMBAI, Oct 31 The Indian rupee rose on
Wednesday, but snapped two successive months of gains to fall in
October as the euphoria over economic reforms petered out and
the central bank kept rates on hold, with global events expected
to determine the currency's near-term direction.
Dealers are closely awaiting further developments in the
euro zone as well as the Group of 20 nations' meeting over the
weekend, where Europe and the United States will be pushed to
tackle their debt woes.
Domestically, with key state elections coming up and the
winter session of parliament starting later in November, any
major reform moves look unlikely in the interim.
For the day, the rupee's gain was largely driven by
custodial banks selling dollars on behalf of foreign
institutional investors as well as gains in the euro.
Foreign funds have pumped in around $2 billion in equities
in October even as the benchmark index saw its biggest
percentage fall since May.
"The rupee is likely to remain rangebound in the next few
sessions with global events likely to drive the currency's
fortunes," said Naveen Raghuvanshi, associate vice-president at
Development Credit Bank.
He expects the rupee to trade in a 53.50-54.30 band in the
The partially convertible rupee ended at 53.80/81
p er dollar, higher than its previous close of 53.96/97. It fell
to a session low of 54.21, but found support at its 55-day
moving average of 54.14. For October, the rupee has fallen 1.8
per c ent.
In the offshore non-deliverable forwards market, the
one-month contract was at 54.08 w hile the three-month was at
In the currency futures market, the most-traded near-month
dollar/rupee contracts on the National Stock Exchange, the
MCX-SX and the United Stock Exchange all closed at around 54.08
wi t h a total traded volume at $4.3 bi l lion.
(Editing by Jijo Jacob)