Bullish Indian Rupee Bets Still Favored

        0526 GMT [Dow Jones] USD/INR is likely to keep heading lower as news of the BJP's win at the elections continues to reverberate around the globe. Investor optimism generated by the massive win has already powered the rupee and Indian stocks much higher and is likely to last a while longer. Put options on USD/INR - bets that the rupee will appreciate versus the dollar - are in vogue now as traders bet on how low the dollar can fall against the rupee. USD/INR hit an 11-month low of 58.37 on Monday as the rupee surged nearly 1.9% against the dollar since the election result. Apart from rupee strength, the greenback has been tumbling on its own due to weakening U.S. government bond yields that dampen the appeal of the dollar. USD/INR is now 58.48 from its Friday close of 58.57. (ewen.chew@wsj.com)
        (END) Dow Jones Newswires

        May 19, 2014 01:26 ET (05:26 GMT)