Aberdeen Asset Management Plc, Mirae Asset Management Co. and Nomura Holdings Inc. predict the rupee will extend a world-beating rally as India’s clearest election verdict in three decades boosts confidence.
Narendra Modi’s Bharatiya Janata Party got 282 of 543 parliamentary seats in the world’s biggest-ever vote, compared with 272 needed to form a government, as voters punished the incumbent Congress party for graft scandals and the worst economic slowdown in a decade. The rupee surged 2.1 percent last week to 58.78 per dollar, the best performance among 78 global currencies tracked by Bloomberg.
The BJP has garnered the first single-party majority since 1984 and that’s boosting bets the new administration will pursue policies to improve the economy without being constrained by coalition politics, according to Deutsche Bank AG. Nomura, the second-most accurate rupee forecaster in the last four quarters, and Aberdeen Asset see the currency rising toward 57 per dollar by year-end, while Mirae Asset predicts a rally to 55.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.