EUR/INR Outlook: Slightly positive, but likely to move sideways, as the rate is above its recent average but lacks a clear driver.
Key drivers:
• The European Central Bank is maintaining a neutral policy stance, with rates stable, supporting the euro.
• Oil prices are trading above average, which can benefit the euro due to its impact on economic stability in the Eurozone.
• India's trade deficit is pressuring the rupee, highlighting challenges that could keep it weak against the euro.
Range: The EUR/INR is likely to drift within its recent range as both currencies face mixed signals.
What could change it:
• Upside risk: A significant improvement in Eurozone economic indicators could boost the euro further.
• Downside risk: Escalating trade tensions with the U.S. could lead to further declines in the Indian rupee.