The Indian rupee dropped toward its largest weekly backtrack against the world's reserve currency in more than two months on Friday as confidence grew about the central bank of the subcontinent advocating for exporters by maximizing the currency's advance, according to Bloomberg.
Since this past Wednesday, when the rupee notched its top level since August 2013, the monetary unit has steadily fallen. Reuters reports the rupee fell at least 11 percent against the greenback in 2013 and thus far this year, the monetary unit has climbed more than 3 percent against its rival currency.
The rupee will continue its downward dip, dragged lower by prospects for the Bharatiya Janata Party to prevail in upcoming elections in India, according to a Reuters poll.
"Right up until the time when the election results come out, things will remain positive," chief economist Madan Sabnavis with CARE Ratings told Reuters on Friday. "Then, I think we will probably get back to reality and see what kind of a government comes in and how differently are they able to do things."
The rupee dropped roughly 0.3 percent against the U.S. dollar on Friday.
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.