The CAD to INR exchange rate has seen notable movements recently, influenced by a multitude of economic factors in both Canada and India. As of now, the exchange rate stands at 65.59, which is significantly higher than its three-month average of 63.71, indicating a 3.0% appreciation. This value has fluctuated within a stable 5.7% range, with a low of 62.54 and a high of 66.10, reflecting the underlying volatility and market sentiments.
Canadian dollar strength is primarily supported by rising oil prices, as Canada is a significant oil exporter. Recent reports indicate that oil prices increased to $59.84 per barrel, providing a boost to the 'loonie.' However, analysts suggest caution as oil prices have been quite volatile, currently 5.1% below their three-month average, which could affect CAD moving forward. Investor confidence has also been bolstered by robust GDP growth, with an annualized expansion rate of 2.6% in Q3 exceeding expectations; this has positively influenced sentiment towards the CAD.
Conversely, the Indian rupee is experiencing significant challenges. Recently reaching a record low of 90.42 per U.S. dollar, the rupee is under pressure due to a widening trade deficit exacerbated by tariffs on exports and substantial foreign investment outflows approaching $17 billion this year. The Reserve Bank of India appears to be allowing a weaker rupee in light of these challenges, focusing more on stabilizing volatility rather than defending a particular exchange rate.
As the global economy continues to evolve, the CAD's trajectory will hinge on oil market trends and the Bank of Canada's monetary policy. Meanwhile, the INR's fortunes will depend on resolving trade imbalances and attracting foreign investment. Currency analysts and market forecasters will be closely monitoring these dynamics, as they could significantly influence CAD/INR exchange rates in the coming weeks and months.
