Reuters Market Eye - The rupee could see more range bound trading given the continued uncertainty over U.S. budget talks, although sentiment in debt markets could remain more positive ahead of the RBI's up to 100 billion rupees bond purchases.
The RBI will buy up to 100 billion rupees of bonds on Monday, raising expectations for additional bond purchase announcements.
However, some volatility could come in the rupee as the U.S. Congress remains deadlocked ahead of October 17 when the country must raise its borrowing limit or risk defaulting on its debt.
India will release factory output data for August on Friday. Another positive reading after the July surprise will lead to continued hopes for a rebound in the economy.
KEY FACTORS/EVENTS TO WATCH
Sat: SEBI board meeting.
Mon: WTO director general Roberto Azevedo in New Delhi.
Wed: Finance Minister P. Chidambaram to attend IMF/G20 meets in Washington from October 8-14
Thu: Trade data for September (tentative b/n Oct 10-17)
Fri: Industrial output data for August.
Forex reserves, bank lending data
(Reporting by Subhadip Sircar)
