The HKD to INR exchange rate is currently range-bound. Key factors include a stable interest rate from the Hong Kong Monetary Authority, while Indian forecasts suggest potential depreciation of the INR due to various economic pressures. Analysts indicate that global market conditions and monetary policies will play a critical role in determining short-term fluctuations.
Additional drivers include the unwinding of carry trade positions affecting HKD stability. For the INR, weakening expectations towards 90 per USD from Union Bank of India could contribute to downward pressure on the INR itself against other currencies, including the HKD.
In the near term, the HKD to INR is expected to continue trading within a tight range, maintaining its recent performance above the 3-month average. An upside risk could arise from unexpected strengthening in the Indian economy or favorable trade negotiations, while a downside risk may stem from higher USD demand or increased foreign portfolio outflows impacting the INR.