MUMBAI, Dec 30 (Reuters) - The Indian rupee ended 2022 as the worst-performing Asian currency with a fall of 11.3%, its biggest annual decline since 2013, as the dollar rocketed on the U.S. Federal Reserve's aggressive monetary policy stance to tame inflation.
Most traders and analysts expect the currency to move between a tight 81.50-83.50 range in the first quarter.
Equity inflows would be a key metric to watch for the rupee for foreign investors as well, analysts said.
But considering several uncertainties heading into 2023, such as tight monetary policy conditions, likely recession in some economies and an ongoing geopolitical conflict, gauging the direction of share markets had become tough, they added.
If we get a selloff in Indian shares, I'll be less optimistic on the rupee," said Christopher Wong, FX strategist at OCBC Bank.