MUMBAI (Commoditiescontrol)- Indian rupee may extend gains in the near term as Mr Modi got re-elected with strong mandate.
Indian rupee last week gained considerably after Narendra Modi was re-elected in the general elections, with second consecutive majority on its own for the BJP.
This is expected to accelerate pace of FII inflows in to the country going forward. Softer tone in crude oil prices also to provide much needed comfort to the Indian rupee.
However, one has to watch out for the ongoing prolonged US-China trade war and geo-political tensions, which may negate the current positive developments going forward. In its Monetary policy the RBI may once again cut interest rates by 25 bps during its next meeting.
Rupee last week was traded in the region of 69.35 and 70.06 and finally settled the week at 69.53 against the dollar as on May-24-2019. Support is seen in the region of 69.20-68.90 and then at 68.50-68.30 levels.
At the same time 70.10-70.30 will act as near term resistance. Only if the rupee settles below 68.30 on weekly basis then there is aroom for further appreciation and one has to review the future outlook on
rupee.
(By Commoditiescontrol Bureau)
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