Forecasts for INR to CAD
The Indian rupee (INR) is currently experiencing uncertainty as it trades at 90-day lows against the Canadian dollar (CAD), settling around 0.015779, which is 3.2% below its three-month average. Analysts suggest that the rupee is facing mixed influences, particularly with the recent tariff implications from the U.S. under President Trump's policies. Fears of rising U.S. interest rates and inflation from surging energy prices may lead to continued depreciation of the INR as investors turn their attention away from Asian currencies, which are under additional pressure from geopolitical tensions, including recent military escalations between India and Pakistan.
The CAD has shown resilience despite weaker oil prices, as Canada continues to grapple with a volatile energy market. Currently, oil prices are notably high at 74.23 USD per barrel, 10.9% above the three-month average, reflecting the loonie's close ties to crude market trends. Economists indicate that fluctuations in oil prices directly impact the CAD given Canada's position as a major oil exporter. As oil prices remain within a volatile range of 60.14 to 75.02 USD, any sustained decline could put downward pressure on the CAD while a steady oil price could support its value.
The Bank of Canada's policy decisions will also play a crucial role moving forward. Analysts emphasize that the Bank's stance on interest rates, closely linked to inflation and economic growth metrics, will significantly influence investor sentiment toward the loonie. Given the overarching uncertainties in global markets and trade, both the INR and CAD are expected to navigate a challenging environment, dictated largely by commodity price fluctuations and geopolitical developments.
Looking ahead, market observers will need to keep a close watch on oil price movements and their effect on the CAD while also considering how ongoing U.S. trade policies and domestic issues could further impact the INR's performance against the loonie.