BackRupee closes at 3-month high against US dollar as exit polls show BJP win in Gujarat
The rupee closed at 64.05 a dollara level last seen on 13 September, up 0.47% from its Thursday's close of 64.35
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Mumbai: The Indian rupee on Friday closed at three-month high against the US dollar as local markets jumped over 200 points after exit polls projected a saffron win in both Gujarat and Himachal Pradesh state elections.
The home currency closed at 64.05 a dollar—a level last seen on 13 September, up 0.47% from its Thursday’s close of 64.35. The rupee opened at 64.20 a dollar and touched a high of 64.01, a level last seen on 18 September.
Most exit polls have predicted a simple majority for the Bharatiya Janata Party (BJP) with over 100 seats in Gujarat with one exit poll predicting two-third majority, while in Himachal Pradesh all three exit polls have predicted two-third majority for the BJP with 47-66 seats.
The predictions, if they come true on Monday, will boost BJP numbers in Rajya Sabha, the upper house of Parliament. Official results will be announced on 18 December.
The benchmark Sensex rose 0.65%, or 216.27 points, to 33,462.97. So far this year, it has gained 26%.
The 10-year bond yield ended at 7.134%, compared to its previous close of 7.131%. Bond yields and prices move in opposite directions.
So far this year, the rupee has gained 5.8%, while foreign institutional investors have bought $8.38 billion and $22.86 billion in equity and debt, respectively.
Asian currencies were trading higher. Japanese yen was up 0.2%, Malaysian ringgit 0.12%, Taiwan dollar 0.06%, Philippines peso 0.05%, Indonesian rupiah 0.04%. However, Singapore dollar was down 0.07%, South Korean won and Hong Kong dollar were down 0.04% each.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.463, down 0.03%, from its previous close of 93.489.
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