* Heavy long-dlr positions in USD/INR - Reuters poll
* Rupee could fall to 56/dollar - UBS report
* Volatility key for any FX intervention - cbank deputy (Updates to close)
By Aditya Phatak
MUMBAI, April 26 (Reuters) - The Indian rupee was range-bound on Thursday, consolidating after recent falls with selective demand from oil importers, but traders warn the currency is likely to remain under pressure in the near-term.
India's economic outlook remains worrisome, given problems such as a widening current account deficit and slowing growth.
These concerns have now been compounded by the prospect of a ratings downgrade after Standard & Poor's cut of the country's outlook.
The continued falls in the rupee, which hit 3-1/2 month lows in the week, a re sparking talk of potential central bank intervention as the local unit is not far off a record low of 54.30 hit in mid-December.
However, India's tight liquidity and declining foreign exchange reserves are likely to prevent an aggressive intervention, traders said.
"They may come (with USD/INR) around 53. I'm saying may because we have to understand that their ability to intervene might not be high given the debt profile vis-a-vis foreign reserves," a senior currency trader said.
The rupee settled at 52.55/56 to the dollar against 52.54/55 on Wednesday. It moved in a range of 52.4250 to 52.65 during the day.
Dealers said oil importers stepped in to sell the rupee around 52.30-52.40 levels.
Traders are on the lookout for any hints of RBI intervention given the prospect of further falls.
A Reuters poll on Thursday showed market players had nearly doubled short Indian rupee bets, largest since November.
UBS said the rupee could hit 56 to the dollar, citing the prospect of slowing flows on the back of "severe" deficit drag and regulatory ambiguity that have reached a "crisis point."
The central bank is looking closely at volatility, not ratings for any intervention decisions, Deputy Governor K.C. Chakrabarty reiterated.
The one-month offshore non-deliverable forward contracts were at 52.91.
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 ended around 52.90 on a total volume of $4.1 billion. (Editing by Subhadip Sircar)
