The Indian rupee was barreling toward its biggest quarterly advance against the world's reserve currency on Friday since 2012 as prospects for a more efficient government loom, according to Bloomberg.
International funds have devoted about $8.8 billion into Indian stocks and bonds thus far in 2014. The subcontinent's top opposition party is forecast to achieve sizable progress in elections that begin next month. Since late December 2013, the rupee has climbed about 3 percent against the greenback.
Prospects are high for the Bharatiya Janata Party to prevail in roughly 195 of 543 seats in parliament's lower house, according to a survey administered earlier this month and released in the middle of this month. Charges of corruption and unease with the economy's slow pace of recovery are poised to be a detriment to the fate of the ruling Congress party.
The Indian rupee advanced about 0.5 percent against the U.S. dollar during the Friday trade session, achieving its top level against its rival since late July 2013.
The Reserve Bank of India is poised to step in and acquire the dollar, according to Reuters. That would keep the rupee range-bound.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
