The EUR to INR exchange rate is currently bullish.
Key drivers include the interest rate differential, with the European Central Bank (ECB) maintaining a flexible monetary policy while projected growth in the eurozone bolsters economic optimism. Additionally, current geopolitical tensions and their impact on energy prices are pivotal; oil is trading at recent highs, which can affect the euro's strength.
The expected trading range for EUR/INR is anticipated to stay stable but could see fluctuations based on developments in the geopolitical landscape and economic data coming out of both regions.
An upside risk to the euro could arise from stronger-than-expected economic growth in the Eurozone, which may prompt the ECB to adjust rates upward. Conversely, a downside risk is the potential depreciation of the Indian Rupee, driven by forecasts of a weaker INR against the US dollar, as this could reinforce INR strength against the euro.