With state assembly election results just around the corner and exit poll predictions indicating Bharatiya Janata Party's clean sweep victory, analysts said that high hopes of a stable government has improved the investor sentiment. Backed with heavy inflow of funds from foreign institutional investors (FII), rupee rose by 34 paise to Rs 61.41 per dollar.
The domestic currency touched its highest levels in more than five weeks. Apart from FII inflows, dollar selling from by banks and exporters also added strength to rupee. As per provisional data provided by the stock exchanges, FIIs invest Rs 863.77 crore in the equity markets. While domestic currency continued to appreciate for the third consecutive day, Indian stock markets saw a range bound session as domestic institutional investors (DII) utilized the recent rally to book profits.