The recent trends in the HKD to INR exchange rate demonstrate substantial fluctuations, driven by both domestic monetary policies and external economic pressures. Currently, the HKD is trading at approximately 11.41 INR, which represents a 2.0% increase compared to its three-month average of 11.19 INR, indicating that the currency has recently achieved seven-day highs. Trading has remained relatively stable within a 4.7% range, fluctuating between 10.91 and 11.42 over the past few months.
Analysts cite the Hong Kong Monetary Authority's (HKMA) recent interest rate cut as a significant contributing factor to the HKD's performance. On September 18, 2025, the HKMA lowered its base interest rate to 4.50%, mirroring U.S. Federal Reserve actions. This cut, the first since December 2024, may ease borrowing costs but could impact the HKD's attractiveness to foreign investors.
In contrast, the Indian Rupee (INR) faces mounting pressures amid escalating trade tensions with the U.S. The rupee has depreciated for five consecutive months, reaching a record low of 88.8000 against the U.S. dollar. Experts attribute this decline to increased tariffs on Indian exports and were recently compounded by announcements of additional U.S. tariffs.
The Reserve Bank of India (RBI) is exploring ways to enhance the rupee's international footprint, aiming to allow banks to issue rupee-denominated loans and introduce official exchange rates for key currencies. While some forecasters anticipate potential RBI interest rate cuts to stimulate growth, most expect the policy rate to remain unchanged at 5.50%.
Overall, the interplay between HKMA's adjustments and RBI's initiatives will be critical in shaping the HKD/INR exchange rate trajectory. Market participants should remain vigilant, as ongoing geopolitical developments and domestic monetary implementations continue to exert influence on both currencies.
