Rupee rallies against dollar

The surprise in dealing rooms 8211; which had discounted any isolatary impact of poll results on the rupee 8211; was of Moody8217;s Investors Service revised country ratings to positive from stable for India8217;s Ba2 ratings on foreign and domestic currency debt. quot;The forex market had discounted election results8230; but the move on the part of Moody8217;s came as a pleasant surprise,quot; a dealer with a European bank said.

8220;Overnight election result trends showing the BJP in the lead encouraged dollar selling by banks and corporates which gained further momentum after the news that the alliance had won a clear majority,8221; said a dealer.

Dealers said banks were unwinding their long dollar positions in the absence of demand for the US currency while exporters resorted to dollar sales which gave the rupee underlying support.