Forecasts for CAD to INR
The CAD to INR exchange rate currently stands at 61.93, which is 1.7% above its three-month average of 60.91. This indicates a relatively stable performance within a range of 4.6%, trading between 59.37 and 62.08. Recent forecasts suggest that the Canadian dollar (CAD) may experience continued pressure, particularly due to the expected decline in Canadian producer prices, which could heighten estimates of possible interest rate cuts by the Bank of Canada (BoC). Analysts note that these cuts would typically lead to a depreciation of the CAD, especially in a scenario where positive oil price trends do not materialize.
Despite a recent increase in oil prices, which usually supports the CAD due to its status as a commodity-linked currency, the loonie has softened. Current oil prices are at 64.78 USD per barrel, approximately 4.8% below their three-month average of 68.05 and have experienced significant volatility, trading within a 24.7% range from 60.14 to 75.02. Experts emphasize that if oil prices continue to falter, the Canadian dollar could face additional downward pressure.
On the front of the Indian rupee (INR), mixed influences are prevalent. The INR has also faced a deterioration against the US dollar, primarily spurred by fears of rising energy prices leading to domestic inflation, given that India is heavily reliant on oil imports. Analysts suggest that the rupee's risks appear "broadly balanced" at its current levels, despite a tightening global economic landscape fueled by tariff uncertainties and U.S. growth concerns.
The ongoing tensions from geopolitical events, such as trade wars initiated by U.S. policies, may further impact the rupee. Currency strategists point out that while these factors exert pressure on the INR, the exchange rate dynamics with the CAD will likely oscillate based on oil price fluctuations, interest rate policies from the BoC, and broader economic trends. As both currencies face their unique challenges amid current global uncertainties, traders are advised to remain attentive to developments impacting commodity prices and interest rates.
