U.S. non-farm payrolls data & state poll results are expected to determine whether the currency would sustain its recent winning run.
The Indian rupee rose on Friday, notching up a third week of gains, while U.S. nonfarm payrolls data and state poll results are expected to determine whether the currency would sustain its recent winning run.The outcome of the state elections is due on Sunday and if exit polls are any indicator, the main opposition Bharatiya Janata Party is likely to win most of the states. A strong win ahead of the general elections due by May would be seen as an affirmation of the party's Prime Ministerial candidate Narendra Modi. Modi is perceived as market-friendly and a win for his party would boost the rupee which has already gained on the exit poll results.The U.S. nonfarm payrolls (NFP) data, due later on Friday, will be a key pointer to whether the Federal Reserve is likely to begin tapering its extraordinary monetary stimulus early next year."We have two important issues lined up this weekend. The much awaited NFP will give clarity on tapering by the Fed and the Indian poll results will give clarity on the political front," said Vikas Babu Chittiprolu, a dealer with Andhra Bank.The partially convertible rupee closed at 61.41/42 per dollar compared with 61.7525/7625 on Thursday, notching up a third day of gains.For the week, the rupee was up 1.7 percent, its biggest weekly win in ten.The rupee's gains this week were also aided by strong foreign interest in bidding for Power Grid Corp of India's $1.1 billion share sale.Foreign investors bid for shares worth $2.7 billion, exchange data showed.In the offshore non-deliverable forwards, the one-month contract was at 61.85, while the three-month was at 62.77.