The Canadian dollar (CAD) has recently stabilized amid resuming trade talks with the United States, following a withdrawal of Canadian digital tax plans. Analysts indicated that barring any significant trade developments, CAD's movement will primarily be influenced by oil price dynamics. Recent data shows CAD trading at 62.84 INR, which is 1.5% above its three-month average of 61.91, reflecting stabilization within a 5.7% range from 59.98 to 63.38.
With Canada being one of the major oil-exporting nations, fluctuations in oil prices have a direct impact on the CAD's performance. Recently, oil prices have reached 14-day lows near 67.11 USD, remaining just 0.6% above their three-month average. The volatility of the oil market, which has experienced a pronounced range from 60.14 to 78.85, plays a crucial role in shaping the CAD's movement going forward.
In contrast, the Indian rupee (INR) faces a mixed outlook as it has been steadily weakening against the US dollar due to rising energy prices that threaten domestic inflation. The rupee's instability is compounded by geopolitical tensions, specifically rising tariffs announced by U.S. President Trump, which create uncertainties in Asian currencies. Despite these pressures, market commentators describe the rupee's risks as "broadly balanced" at its current levels.
Overall, both currencies are experiencing pressures from external factors, with CAD closely tied to oil market trends and INR impacted by U.S. economic policies and regional geopolitical tensions. As the situation evolves, businesses and individuals engaged in international transactions should remain vigilant of these currency movements to optimize their financial strategies.