Indian rupee seen in narrow band in 2015

By: | Published: December 31, 2014 4:09 PM

The Indian rupee is expected to move in a narrow band after a year that saw the currency rising and weakening from one half to the next.

year-ender, year-ender 2014, Indian rupee, Indian rupee 2015The rupee is expected to move in 62.50-66.00 band during the year. (PTI)

The Indian rupee is expected to move in a narrow band after a year that saw the currency rising and weakening from one half to the next.

The rupee posted strong gains in the first half of 2014, peaking at an 11-month high of 58.33 in May on the back of strong foreign inflows.

But the rupee has steadily lost ground, hitting a 2014 low of 63.89 this month due to a worsening global risk environment.

For the year, the rupee fell 2.3 percent, though that was much better than a 12.6 percent loss last year.

Analysts expect the rupee to trade in a narrow band in 2015 with positives such as government reforms and foreign buying to be offset by a highly anticipated U.S. rate hike.

Dealers also expect RBI to try to prevent excessive strength in the rupee in a bid to help exporters remain competitive.

The rupee is expected to move in 62.50-66.00 band during the year, dealers said.

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