The rupee opened the day marginally strong at 58.44 to the dollar, as against Friday's close of 58.52 to the dollar. The rupee is expected to trade in a range as forex markets, like equity markets would track cabinet formation of the new Union Government under Narendra Modi.
In the more short to medium term the rupee is expected to trade in a range and would eye cues from across the globe, as we head into the first Union Budget to be delivered by the new government.
The rupee has shown remarkable recovery in the last few weeks as a stable government at the centre takes shape. In fact, the rupee has recovered from a historic low of 68.86 seen in August last year to the current levels.
Dealers say should the new government unleash further reforms the currency could continue to gain against the dollar. However, the Reserve Bank of India may not allow substantial gains in the rupee, given that it could hurt exports in the short to medium term. Check rupee rates here