Zee Media Bureau
New Delhi: The optimism around pre-polls surveys showing a higher probability of Gujarat chief minister Narendra Modi forming the next government might push rupee between the range of 40 and 45 per dollar, as per Adam Gilmour, Citigroup's head of Asia-Pacific currency and derivatives sales.
Gilmour said that if Modi "gets in", it will be a "game-changer". “A weak coalition would be the worst-case outcome,” he told an international news wire. He said that the currency might slide beyond August’s record low of 68.845.
The rupee has staged an impressive turnaround from its all time low level of 68.80 on August 28 last year, largely driven by a slew of emergency measures and the tightening of monetary policy.
The rupee today fell by 41 paise to 61.36 against the dollar in early trade due to increased demand for the US currency from banks and importers amid a weak opening in local equities.
Dealers said besides increased demand for the American currency from importers, dollar's strength against other currencies overseas after the US Federal Reserve hinted that the central bank could hike interest rates earlier than expected, mainly put pressure on the local unit.
With Agency Inputs