38% of global investors see rupee in 65-70 range in 2015: BofA-ML survey

NEW DELHI: Even as the strengthening of US dollar has been wreaking havoc on most emerging market currencies, global investors believe that rupee should largely remain stable in the range of Rs 60-65 against the greenback during the ongoing calendar.

In an investor conference hosted by Bank of America Merill Lynch( BofA-ML), an overwhelming number of global investors said that they see rupee trading in the range of Rs 60-65 in 2015.

Having said that, while a total of 57.40 per cent of the participants hold this opinion, a significant 31.9 per cent see the domestic currency tumbling and trading in 65-70 range. A total of 6.4 per cent of the sample expected rupee to trade in 70-75 range.

This adds up to a total 38 per cent of investors, who see rupee falling below 65 level in 2015.

Meanwhile, a mere 4.3 per cent of participants expect rupee to appreciate towards 55-60 range. As many as 50 global investors participated in the survey.

The US Federal Reserve's two-day policy review, which will kick off this evening, will be crucial for world currencies.

While the data releases in the US have been mixed, with the overnight factory output figures suggesting the interest rate hikes are quite away, the event has kept global currencies, equities and bond markets on tenterhook.

It is believed that further recovery in the US economy and hikes in interest rate would spur demand for dollar and dollar-denominated assets, which may hurt global currencies against the greenback.

This has been a major reason why the dollar index managed to breach 100 level last week. The index gauge dollar against a basket of six major world currencies.

"We expect the RBI to hold Rs60-65/USD in view of US Dollar strength. It will continue to recoup FX reserves at every possible opportunity," said BofA-ML in a note.

Rupee was quoting at 62.7 against the dollar on Tuesday.