Re at 4-month peak after BJP victory in assembly polls

The rupee on Monday rose to a 4-month high boosted by record-high stock market performance after the Bharatiya Janata Party (BJP), considered to be business-friendly by the investor community, winning three out of four key state assembly elections.

After opening on a strong positive note against the US dollar, the rupee closed the session at 61.13 levels. During the day, the dollar-rupee pair made high of 61.20 levels and a low of 60.83 levels. It was seen surpassing the level of 61.00 as investors anticipated a BJP comeback after seeing the polling results in 4 legislative assembly elections.

The depreciation of US Dollar in international trade compared to other global currencies has also helped the rupee to a great extent.

India Forex Advisors Founder and CEO Abhishek Goenka said, “It was yet another strong start for the rupee which is seen crossing the level of 61.00 against the US dollar. This is the third straight week of gains in the rupee. The recent gains in the currency are mainly attributed to the assembly elections. BJP, which is widely seen by investors as being more business-friendly, swept recent state elections. Dollar weakness also continued to contribute to the gains in the rupee.”