The Canadian dollar (CAD) remains relatively stable, showing resilience despite fluctuations in oil prices, which have recently stalled. Analysts note that CAD's performance may depend on upcoming Canadian retail sales data, which could indicate sales growth for November. A strong report could bolster the loonie as the economy adapts to recent changes.
On the other hand, the Indian Rupee (INR) is under significant pressure, having reached a record low against the U.S. dollar at 90.42. This depreciation is attributed to a widening trade deficit, a substantial outflow of foreign investment, and a policy shift by the Reserve Bank of India, which appears willing to tolerate a weaker rupee in light of current market conditions. Experts suggest that unless swift action is taken in international trade negotiations, the INR could further decline, with forecasts indicating a potential fall to 92 against the dollar.
Recent data shows that the INR to CAD is currently at 0.015398, about 1.9% below its three-month average. The rupee has traded within a relatively stable range of around 5.7%, indicative of current market sentiments.
As for oil, which significantly influences the CAD, prices have shown volatility but are currently trading around $60.53, approximately 5.2% below their three-month average. This ongoing variability suggests that the CAD could experience pressure if oil prices decline, while any future uptrend in oil could provide strength to the loonie.
In summary, while the CAD has a foothold supported by stable oil prices and positive economic indicators, the INR faces a challenging environment marked by significant depreciation and economic headwinds. Stakeholders looking to transact between these currencies should remain vigilant of external factors such as oil price fluctuations and the evolving economic landscape.
