Reported 5 months ago
Bank of America remains optimistic about the Indian rupee despite increasing market volatility due to the ongoing elections in the country. The bank's strategists believe that the rupee has been stable with low realized volatility, indicating expectations that the central bank will protect the currency from drastic fluctuations post-election results. The article mentions concerns over lower voter turnout impacting Prime Minister Modi's party's chances of re-election, with results expected on June 4. Bank of America sees potential for the rupee to appreciate by 1%-1.5%, and they have utilized a one-touch downside option on USD/INR to reflect this positive market sentiment.
Source: YAHOO