In 2021 forecasts and predictions for the CAD/INR exchange rate are driven by the energy crisis and lingering effects of the Coronavirus pandemic rather than any fundamentals or relative sentiment towards the Canadian and Indian economies.
However in October CAD/INR has risen from 57 to above 60, the loonie has been helped along by the end of any election uncertainty and the strong demand for gas from the energy crisis in Europe.
04 Oct 2021
20 Jul 2021
18 Oct 2020
19 Oct 2016
21 Oct 2011
23 Oct 2001
ING think CAD is in oversold territory. They expect more tapering by the Bank of Canada to support the Canadian dollar into year-end, and the short positioning may help limit the loonie’s downside. CAD Outlook
The Indian rupee has dropped to its lowest level against a range of currencies since April as the Reserve Bank of India kept its monetary policy unchanged.
Most Asian currencies have weakened against the dollar on fears that surging energy prices could spur inflation and interest rate hikes.
India imports most of its oil requirements and higher crude prices tend to push up domestic inflation.INR Outlook
Since the initial pandemic shock in March last year CAD/INR has risen around 30 percent, welcome news for Indian expat workers, who represent one of the largest groups remitting money from Canada.
Unlike Latin American countries, which continue to benefit from a U.S. recovery, Asian countries are vulnerable to economic austerity in Saudi Arabia and elsewhere in the Middle East due to the drop in demand for Oil during the Covid pandemic. More than 60% of remittances to India, Bangladesh and Pakistan come from Gulf countries.
Note that forecasts and predictions for the CAD/INR exchange rate change all the time, affected by news events and relative sentiment towards the Canadian and Indian economies and this exchange rate is even more volatile than usual because of the uncertainties around the Coronavirus pandemic.
You can read more about CAD cross-rate forecasts here CAD Trends and Forecasts for 2021.
Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.