Rupee trades marginally higher at 69.71 per dollar

The Indian rupee is trading marginally higher at 69.71 per dollar against previous close 69.74.

On May 20, the Indian currency jumped 49 paise, which is the biggest single-day gain in last two months against the US dollar on the back solid gains in equities.

Rupee rose sharply against the dollar in yesterday’s session after exit polls released during the weekend showed the current government could get an extension for another term thereby bringing in stability on the political front, said Motilal Oswal.

Rupee as well as bonds rallied after exit polls projected a major could be on its way for the NDA. Indian equities too rallied and witnessed its single-day gain since September 2013.

In the recent past, foreign fund inflows have aided the rupee while the central bank’s efforts to ensure adequate liquidity in the banking system through forex swaps and open market bond purchases have helped bonds. Today, USD-INR pair is expected to quote in the range of 69.40 and 70.05, it added.