INDIA RUPEE — Rupee to rise as offshore traders cut bearish bets, RBI clarifies hedging rules

By Nimesh Vora MUMBAI, Oct 16 (Reuters) — The Indian rupee is poised to rally despite weakness across Asian peers, with offshore traders cutting bets against the Asian currency and expectations of continued central bank dollar selling lending support. The rupee is expected to open in the 94.75 to 94.80 range, per traders, having settled at 95.0550 to the dollar on Thursday. Other Asian currencies dipped and the dollar index inched higher. There has been "a fair amount" of unwinding of long USD/INR positions this week, a currency trader at a foreign bank said. That is supporting the rupee in the non-deliverable forward market and with the Reserve Bank of India "quite determined" to push the rupee higher, there's probably more room for long dollar positions to be cut, he added. The dollar/rupee rate in the NDF market is trading at a discount to its onshore counterpart, a rare phenomenon, particularly at a time when the rupee's outlook remains challenging. New Trajectory The rupee has charted its own course this week, buoyed by a series of measures by the RBI to curb dollar demand and support the currency. The measures included a reserve requirement on certain large foreign-exchange t