Mumbai: The Indian rupee on Monday closed lower against the US dollar after Bharatiya Janata Party (BJP) managed to win fewer-than-expected seats in both Gujarat and Himachal Pradesh assembly elections.

The home currency closed at 64.23 a dollar, down 0.28% from its Friday’s close of 64.05. The rupee opened at 64.23 a dollar and touched a high and a low of 64.09 and 64.72 respectively.

Early morning, the currency crashed nearly 1% to hit a low of 64.72 a dollar after early trends showed a close fight between Congress and BJP in Gujarat.

However, final counting showed that BJP winning nearly 99 seats, while Congress gained 77 seats in Gujarat. In Himachal Pradesh, BJP managed to get nearly 44 seats, while Congress retained its 21 seats.

Exit polls were suggested that BJP likely to win over 100 seats in Gujarat, while in Himachal Pradesh it may get comfortable victory.

The benchmark Sensex rose 0.41%, or 138.71 points, to 33,601.68. So far this year, it has gained 26%.

“While the final tally looks in favour of BJP, the hiccup during the counting period is an indication that the BJP has managed to scrap through. In light of this, it could be termed as a political set-back if not a disaster for the BJP. The union govt may turn populist going forward, particularly in the forthcoming budget, and the government may not go all out with its reforms", said Ajay Kejriwal, president, Choice Broking.

The 10-year bond yield ended at 7.181%, compared to its previous close of 7.134%. Bond yields and prices move in opposite directions.

So far this year, the rupee has gained 5.3%, while foreign institutional investors have bought $8.38 billion and $22.86 billion in equity and debt, respectively.

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