Rupee hits highest level since June 2013; trades at 58.47 to the dollar

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Rupee hits highest level since June 2013; trades at 58.47 to the dollar
The Indian rupee hit the highest level since June 18, 2013, jumping to 58.47 against the dollar, a gain of 32 paise over Friday's closing.

The rally in the rupee was on the back of the likely formation of a strong and stable NDA government under Narendra Modi that could complete its five year tenure. On Friday, the NDA government secured 334 seats and won a comfortable majority in the Lok Sabha elections.

Dealers say there could be a further rally in the rupee given the strong economic growth agenda to be followed under Narendra Modi.

A rally beyond 58 cannot be ruled out, though, it's highly likely that the RBI may intervene given the fact that a further appreciation in the rupee would worry exporters.

The RBI might mop up dollars to prevent further appreciation as exports could become less competitive in the global market, should the rupee keep appreciating. Moreover, global economic recovery is still fragile to boost exports. Check currency rates here

Read more about: dollar, narendra modi
Story first published: Monday, May 19, 2014, 9:09 [IST]
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