MUMBAI, Nov 1 Reuters The Indian rupee is likely to break out of rangebound trade, as the Reserve Bank of India39;s defence of the currency will be unsustainable at some point of time, traders said.

The rupee was at 83.27 against the U.S. dollar at 1108 a.m. IST, slightly weaker than 83.25 in the previous session.

The rupee39;s monthly range narrowed last month despite persistent local dollar demand and equity outflows, as the central bank39;s forex market interventions prevented a breach of the 83.29 record low.

The spike in U.S. Treasury yields and global risk aversion due to the military conflict in the Middle East also could not hurt the rupee much.

A repeat of what happened in October is not likely, bankers said.

The prevailing narrow range for the rupee is unlikely to hold, said Apurva Swarup, vice president at Shinhan Bank India.

Eventually the RBI will have to stop, as the current approach is unsustainable in the long term, he said

Volatility expectations for the rupee have dropped. Onemonth implied volatility eased to a multiyear low of 2.45 on Wednesday.

It39;s advisable to fasten your seatbelt and prepare for a potential ride into higher volatility, said Amit Parbari, managing director at forex advisory firm CR Forex.

On Wednesday, most Asian units fell before the U.S. Federal Reserve policy outcome due later in the day.

The dollar index was higher at 106.75 and the 10year U.S. Treasury yield rose.

The Fed is widely expected to make no change to…