BENGALURU, July 3 Reuters The Indian rupee will trade within the narrowest range in nearly three decades over the coming year as the Reserve Bank of India RBI continues to maintain its tight grip on the currency39;s movements, according to a Reuters poll.

While most emerging market currencies fared badly against the dollar in the past two years, the rupee has stayed remarkably stable due to the RBI39;s nearly 650 billion forex reserves which it has deployed regularly to curb volatility.

The currency39;s implied volatility , hovering at its lowest level in nearly two decades, is expected to hold ground at least until the yearend, the July 13 Reuters poll of 40 foreign exchange strategists found.

Median forecasts showed the rupee would trade at 83.41 per dollar by endSeptember, and by end2024 the currency would touch 83.20, around the level it was trading on Wednesday.

The rupee was forecast to gain 0.6 to 83.00 per dollar in a year.

The rupee continues to be dominated by the RBI39;s steadfast focus on curbing volatility, limiting any impact of portfolio flows or changes in fundamental outlook, said Abhay Gupta, emerging Asia fixed income and forex strategist at BofA Securities.

Despite the shortterm benefits, too much of a good thing can have its sideeffects. The RBI may have gone overboard in containing volatility by driving it to levels that are wellbelow the historical ranges for rupee and are comparable with a pegged currency.

Analysis showed the standard…