how stability would come at a price for NRIs

           

• Image Credit: Bloomberg
• The rupee has been through some extremely volatile times since August last year, at one time even slipping to 68 to the dollar

Dubai: After nine months of getting more rupees for a dollar, expatriate Indians could now be confronted by the fact they could be getting less.

As the election results confirmed that the new government will assume power with a sizable majority, the money markets pushed the rupee to Rs55.30 to a dollar.

For sure, some of the exuberance should scale down in the coming days, but the prospects are that the rupee will be strong compared to its levels in the preceding weeks.

“The rupee should trade in the range of 58-60 to the dollar on the back of stronger dollar inflows into the Indian market in the short term,” said Siddarth Razdan of Dubai based I Capital Management Services. “But any further appreciation could hurt exports and aggressive RBI (Reserve Bank of India) intervention is expected around the 58 level.”