The EUR to INR exchange rate shows a bearish trend.
Key drivers include:
- The European Central Bank (ECB) has maintained interest rates, focusing on inflation control, which puts downward pressure on the euro's value.
- Geopolitical tensions, particularly the ongoing war in Ukraine, continue to create uncertainty in the Eurozone, impacting economic stability and growth outlook.
- India's projected economic growth, supported by strong fundamentals, could lead to depreciation of the INR against the USD, further influencing the EUR/INR rate.
In the near term, the EUR/INR is expected to trade in a stable range, fluctuating slightly above its three-month average.
Upside risks include potential positive economic news from the Eurozone, such as improved consumer confidence or better-than-expected GDP growth. Conversely, if tensions escalate globally or the INR strengthens significantly due to favorable trade deals, it may exert downward pressure on the euro against the rupee.