Expectations are sky high and rightly so, the incoming Prime Minister Narendra Modi has a well proven track record in the state of Gujarat. We expect the government to soon get into action mode on policy and the next Budget by first/second week of July will be crucial. At least, till the Union Budget, we can expect rupee to remain supported at lower levels and show inclination to move towards 57.50/58.00 levels on spot. In case of RBI intervention and global market volatility, the local unit can find strong support between 59.00/59.50 levels. Rupee will also find favour against the Euro and Yen.
By Anindya Banerjee, analyst, Kotak Securities