USD/INR: Rupee may open higher with Modi's ruling party taking early lead in vote count

Indian Rupee (INR) will likely cheer early trends showing Modi's ruling party in the lead.
USD/INR could drop to 68.00 if NDA gets a majority.

Omkar Godbole FXStreet Contributor

The Indian Rupee may open higher at 09:00 am local time, as Prime Minister Modi's ruling party seems to have taken an early lead in the vote count.

As per the latest report, the National Democratic Alliance (NDA) led by Modi's Bharatiya Janata Party (BJP) is leading with 26 seats, while the opposition led by Indian National Congress (INC) is trailing big time with 7 seats.

The exit polls predicted on Sunday the National Democratic Alliance (NDA) led by Modi's Bharatiya Janata Party (BJP) surpass the 272 seats needed to command a majority in the lower house of parliament.

With the early lead for Modi's BJP, USD/INR will likely gap lower below 69.50, having closed on Wednesday at 69.63.

A majority for the NDA is widely expected to send the USD/INR pair down to 68.00-67.70 levels over the next few days. On the other hand, a hung parliament could push USD/INR higher to 72.00 in the near-term.

USD/INR forecast: A majority for BJP-led NDA would be positive for Rupee, but upside limited

Pivot levels

1. R3 70.2813
2. R2 70.1332
3. R1 69.9048
PP 69.7567
1. S1 69.5283
2. S2 69.3802
3. S3 69.1518

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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