Rupee is expected to trade weak due to uncertainty over Parliament elections outcome. Many analysts thinks that if Narendra Modi gets elected, the positive sentiments among the investors and business houses, will boost the local markets to trade positively and will help to reach new highs in coming days.
The trading range for the Spot USD/INR pair is expected to be within 60.00 to 61.20," he added. Forward dollar premiums remained weak due to sustained receipts by exporters. The benchmark six-month forward dollar premium payable in September declined further to 210.5-212.5 paise from last weekend's close of 220-221.5 paise and far-forward contracts maturing in March 2015 also dropped to 449-451 paise from 460-462 paise.
The RBI fixed the reference rate for the USD at 61.1163 and for the euro at 84.5220 from 60.3805 and 83.5737, respectively. The rupee dipped further against the pound sterling to end at 101.88 from last weekend's close of 101.37 and also slipped against euro to finish at 83.85 from 83.56. However, it fell back against the Japanese currency to close at 59.38 per 100 yen from preceding weekend's close of 59.04.
