The most bullish forecaster on the Indian currency is of the view that the currency might scale up to 67 per dollar, outperforming its major Asian peers, in an event if the exit polls come to be true and Prime Minister Narendra Modi comes to retain power at the centre once again after 17th Lok Sabha elections are announced on Sunday.
The second term for Modi led BJP would trigger more of foreign inflows into the Indian markets and this is likely to augur well for the rupee.
So, Modi coming back to power and another rate cut by the RBI in its June monetary policy review meet will be positive for the rupee. And rupee is forecasted to strengthen to levels of 67 by June end, the levels last seen in the same month last year.
The rupee rallied the most since December on exit poll outcome predicting Modi win. However, in today's trade rupee is trading almost flat at 69.75 per dollar.