The INR to AUD exchange rate has a bearish outlook for the near term.
The primary drivers include the interest rate differential, as the Reserve Bank of Australia is expected to raise rates to combat inflation, giving the AUD an edge. In contrast, various forecasts expect the INR to weaken against the USD, influencing its value against the AUD. Additionally, positive economic expectations for Australia, driven by commodity prices and government policies, are further supporting the AUD.
The market anticipates that the INR/AUD trading range will remain stable, fluctuating around current levels over the next few months.
Potential upside risks for the INR could stem from unexpected improvements in India's economic growth, while downside risks include a more aggressive policy stance from the Reserve Bank of Australia, which could strengthen AUD further and dampen the INR.