The market bias for the CAD to INR exchange rate is bearish. A recent strong jobs report in Canada, showing a notable increase in employment and a dip in unemployment, has bolstered the Canadian dollar somewhat. However, forecasts indicate a projected depreciation of the Indian rupee, which could impact the exchange rate further.
Key drivers include the interest rate differential, as the Bank of Canada maintains its policy rate at 2.25%, while the Reserve Bank of India faces challenges from potential weakness in the rupee. Additionally, rising oil prices, recently reaching 30-day highs, supports CAD given Canada's status as a major oil exporter.
Looking ahead, the CAD to INR exchange rate is expected to remain within a stable range as recent trading patterns suggest. An upside risk could arise from stronger commodity prices, while a downside could be driven by further INR depreciation or adverse economic indicators.
