The current market bias for the HKD to INR exchange rate is range-bound. Analysts anticipate stability in the HKD due to the Hong Kong Monetary Authority's consistent interest rate policy, while expectations of INR depreciation could influence dynamics.
Key drivers include the interest rate differential, with HKMA likely to maintain a stable policy rate amid modest inflation pressures. Additionally, recent forecasts indicate that the INR may weaken due to fundamental factors, even as some projections suggest potential long-term appreciation.
The expected trading range for HKD to INR suggests fluctuations will remain limited over the next 1 to 3 months, particularly in light of historical stability.
An upside risk includes strengthening economic growth in India that could support the INR. Conversely, increased foreign portfolio outflows could exert downward pressure on the INR, impacting the HKD/INR exchange rate.