The EUR to INR exchange rate is currently range-bound.
Several factors are influencing this stability:
- The European Central Bank's flexible interest rate policy, especially amid Bulgaria's accession to the Eurozone, supports the euro.
- The Indian rupee is under pressure from projected depreciation towards 90 per USD as noted by multiple forecasters.
- The Eurozone's anticipated GDP growth of 1.6% in 2026 is expected to bolster the euro.
The EURINR is trading around 105.4, slightly above its average over the past three months, indicating a stable range between approximately 101.8 and 106.8.
Upside risks include a stronger-than-expected economic recovery in the Eurozone or a resolution of geopolitical tensions affecting global markets. Conversely, downside risks might arise from worsened global trade dynamics or deeper depreciation of the INR due to continued foreign portfolio outflows.