It took just 5 weeks for the worst-performing currency to attain the position of the best. The Indian Currency statistics turned 360 degrees in the recent week. This change has been backed by the improved possibility of current PM Narendra Modi to once again bag a 2nd term as winning political party. Given the recent issues between Pakistan and India, the approach opted by Modi has actually led to robust flows in the local shares & debts.
If Prime Minister Modi wins his second term, the economical position of Rupee will reach better heights, mentioned Scotiabank’s Currency Strategist, Gao Qi living in Singapore. The strategist expects this current to reach INR 67 for each dollar by the end of June. Moreover, the dollar gush sent rupee to its very highest since the month of August last year. The optimism with regards to rupee has also been reflected in derivatives market. The global conditions have recently turned supportive towards the ruling party BJP and the recovery for portfolio flows now serves as the key promoter of increasing positivity seen for Indian National Rupee.
Ashish Agarwal, A Plc Strategist working for Barclays wrote that the potential coalition victory led by BJP shall bode well in terms of value for the INR all through the year.