The rupee gained almost 1 per cent in trade, hitting 59.56 against the dollar, on heavy dollar selling ahead of exit poll data to be announced later today.
Hopes that the NDA led by Narendra Modi would be inching closer to the 272 seats mark fuelled a rally in the rupee.
The rupee may now hit 58 mark on the day of the results should the NDA end up with 260-270 seats. There remains huge speculative interest in the Indian currency and markets are factoring the above number of seats.
There is also a possibility that the Reserve Bank of India may mop up dollars should the currency appreciate significantly. The central bank may not want to let the currency appreciate beyond a point, which could hurt exports badly.
Stocks of IT companies have fallen as the rupee appreciated significantly against the dollar today. The rupee has shown smart recovery since hitting a historic low of 68.86 in August last year. Check currency rates here