The currency had closed at 59.29 against the dollar on Thursday.
Dealers say the rupee may test the Rs 58 levels, but, the Reserve Bank of India (RBI) may not allow the rupee to appreciate too much post election results.
The one reason for doing so would be the fact that this could hurt exports in the short to medium term.
Given that the current account deficit is under control and international prices of crude oil are very steady, it would not make sense to allow the rupee to appreciate. This is also because exports would be hurt, at a time when global economic recovery is still fragile and by no means robust.
The rupee has shown remarkable recovery since hitting a low of 68.86 against the dollar in August last year.
Expect the rupee to continue to remain volatile throughout the day as election results begin pouring in. Check currency rates here