USD/INR: Rupee hits 2-week tops near 69.30 as PM Modi set to sweep election win

INR tracks the Indian stocks surge, knocks-off USD/INR.
Modi lead signals single-party majority in India election vote count.

Dhwani Mehta FXStreet

The Indian Rupee (INR) extended its three-day winning streak on Thursday and went onto hit two-week tops vs. its American counterpart in the opening trades, the Indian election vote count suggested PM Modi likely clinching the second-term.

The official data from the Election Commission showed the BJP ahead in 279 seats - more than the 272 seats needed to command a majority in the Lok Sabha - which would give it the first back-to-back majority for a single party since 1984. The main opposition Congress Party was ahead in 52, Reuters reported.

Over the last hour, the USD/INR cross is seen making recovery attempts and regains 69.50 levels. Despite the latest uptick in the spot, the risk remains to the downside, with the Indian stocks trading at record highs and bonds rallying that helps keep the buoyant tone intact around the domestic currency. The benchmark Nifty index was up 1.25% at 11,880 points.

Amid increased bets of incumbent Prime Minister Modi returning to power, the foreign fund inflows have aided the Rupee in the recent past. “Indian markets have been pricing in the return of the BJP government since tensions with Pakistan broke out in late February and led to a surge in support for PM Modi”, as cited by Reuters.

The final verdict of the election vote count will be out by 1230 GMT later today.

USD/INR Technical Levels

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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