USD/INR likely to trade with upward potential towards 66.0 level over weeks ahead, says Scotiabank

The USD/INR currency pair is expected to trade with an upward potential towards the 66 level in the weeks ahead on rising hopes for a US tax overhaul and solid US fundamentals. In general, the INR is expected to follow a broader market tone but with a relatively lower volatility for now given the nation’s large foreign reserves.

The Gujarat Assembly Elections 2017 will be held in two phases on December 9 and 14, while the counting of votes will take place on December 18 according to the Election Commission of India. It will be the first one after Prime Minister Narendra Modi’s three straight poll victories in the state.

The Bharatiya Janata Party (BJP) has got a majority on its own over five elections in a row since 1995 and is seeking a sixth straight win. The so-called Gujarat model of development was an important part of the BJP’s campaign in the 2014 Lok Sabha election. Thus the results of the Gujarat Assembly Elections this year will be crucial for both the BJP and the Congress (INC) in the run-up to the 2019 General Elections.

The BJP is looking at a comfortable victory in the upcoming Assembly elections in Gujarat. The Times Now-VMR opinion survey conducted on 25 October projects that the BJP could secure around 118-134 seats (52 percent of votes) in the Gujarat Assembly Elections, while the Congress (INC) could win around 49-61 seats (37 percent votes).

"It would be positive for the INR should the BJP win the elections with a landslide victory in December. As we know, the BJP has set itself a target of winning 150 of the 182 Assembly seats in the state," the report said.

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