Mumbai: Pramit Brahmbhatt, Veracity Group CEO said, "Rupee last week broke all the immediate resistance and appreciated over two per cent as the opposition Bharatiya Janata Party and its allies won the country's elections with a clear majority which has boosted investor's confidence.
“Rupee continued to trade positively and posted its third weekly gain in a row to trade 11 month high and also registered its best week in eight months. The next major resistance for rupee is at 58.00-mark, near to this level RBI is expected to intervene and also importers are expected to enter in the market. The trading range for the Spot rupee is expected to be within 58.00 to 59.00."
Forward dollar premiums dropped sharply on fresh receivings by exporters. The benchmark six-month forward dollar premium payable in October fell back sharply to 202-204 paise from last weekend's close of 228.5-230.5 paise. Far-forward contracts maturing in April 2015 also plunged to 418-420 paise from 466.5-468.5 paise.
The RBI fixed the reference rate for the USD at 58.8610 and for the euro at 80.7166 from 60.0540 and 83.0738 respectively. The rupee strengthened further against the pound sterling to end at 98.79 from last weekend's close of 101.33 and also shot up against euro to finish at 80.55 from 82.77. However, it bounced back with a vengeance against the Japanese currency to close at 57.96 per 100 yen from preceding weekend's close of 59.04.
