Rupee trades strong at 60.13; up 18 paise

Published: Friday, May 2, 2014, 10:07 [IST]

INR

83.376

The rupee was slated to once again make its way into the 50's levels after trading strong at 60.13 to the dollar, up 18 paise over Wednesday's close

Dealers say there has been some dollar selling from foreign funds and corporate houses, which has pushed the rupee higher against the dollar.

The US Federal Reserve on Wednesday had announced a further reduction in its QE3 programme, which did not have any adverse effect on the currency in any way. Read more on QE3 here.

This was the last major event that could have increased the volatility of the rupee ahead of the exit polls and election results.

Dealers say that the next big trigger for the markets would be the Election Results and depending on the number of seats for the NDA, the rupee could react accordingly.

Even if the NDA does not match the 230 seats that are largely expected from the forex and equity markets, it's unlikely that the rupee would fall sharply, as the fundamentals of the economy, particularly the current account deficit remain strong.

The rupee had slumped to a record low of 68.86 against the dollar in August last year, but, has shown a remarkable recovery since than on the back of some stellar measures by the RBI and the Government. Check rupee rates here

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