History suggests rupee is set for a hangover post 2019 Lok Sabha elections

India’s rupee has been Asia’s best-performing currency in the past three months but history suggests it will weaken once the current general election is over.

The currency has shown a tendency to flip directions after polls have been completed, according to a study by Edelweiss Securities Pvt, based on the past three election cycles. The currency has tended to reverse course when it has rallied ahead of the vote, said Madhavi Arora, an economist at the brokerage in Mumbai.

Seasonality is set to be an issue as well.

The month of May, when election results are usually announced, has proven to be an