Rupee trades steady at 60.06; eyes next week's exit polls, election results

Business

oi-Sunil

By Sunil Fernandes

Published: Friday, May 9, 2014, 10:05 [IST]

The rupee was trading steady against the dollar at 60.06, unchanged over Thursday's levels. Dealers say that the currency may not see much volatility today and would react to the exit polls numbers to be broadcast by news channels on Monday, ahead of the final election results on May 16.

The currency has remained stable over the last few trading sessions, but, volatility is likely to be heightened next week as election results draw closer.

The rupee has recovered substantial ground in the last few months, after hitting a historic low of 68.86 against the dollar in August last year. Even if the elections results are not too favourable, it's highly possible that the rupee may not tank, given the strong fundamentals for the currency, particularly the sharp fall in the current account deficit.

Also, the RBI is likely to intervene in the forex markets and sell dollars, given that in the last few months the central bank has managed to shore up its forex reserves.

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