The Indian rupee is expected to trade in a narrow range in October as traders watch the Reserve Bank of India's policy decision and global dollar moves. The currency has been under pressure from elevated crude oil prices and foreign fund outflows, but RBI intervention has kept volatility in check. Analysts expect the rupee to hold in a defined band, with the central bank likely to step in to prevent sharp depreciation.

The US Federal Reserve's policy stance and the outcome of India's trade data will be key drivers. A stable rupee is crucial for controlling imported inflation, especially for fuel and electronics. Forex dealers said the RBI's dollar sales had been effective in smoothing fluctuations.

The currency's direction in the coming weeks will depend on whether global risk appetite improves and crude prices stay subdued. The RBI's forex reserves provide a strong buffer against external shocks. Traders expect the central bank to continue curbing excessive volatility in the currency market.