Forecasts for INR to CAD
The INR to CAD exchange rate has recently been under pressure, currently trading at 90-day lows of approximately 0.016105, which is 2.7% below its three-month average of 0.016555. Analysts indicate that the Indian rupee faces mixed influences, primarily driven by concerns related to U.S. economic policies under President Trump, including the imposition of tariffs which have adversely affected U.S. growth forecasts. The rupee's risks are described as "broadly balanced," though ongoing volatility in the dollar and surging energy prices — crucial given India’s reliance on oil imports — could further weaken the currency.
In contrast, the Canadian dollar is displaying resilience despite recent declines in oil prices, with current trading around 12.2% below its three-month average of 73.75 for crude. Market observers note a potential decoupling of the CAD from oil prices, although it remains uncertain whether this trend will hold. The loonie typically aligns with commodity prices due to Canada’s status as a major oil exporter, and fluctuations in oil can significantly impact its strength. As the CAD experiences volatility during U.S. and Canadian trading hours, any shifts in the broader economic environment, including developments in U.S.-Canada trade relations and Federal Reserve policy changes, will also play a critical role in shaping its outlook.
With oil trading within a volatile range of 61.58 to 82.16 and the current market pointing to highly fluctuating oil prices, it's essential for traders and businesses engaging in international transactions to monitor these movements closely. Economists highlight that a sustained return to higher oil prices could work in favor of the Canadian dollar, while the Indian rupee may continue to struggle with the dual pressures of rising import costs and geopolitical uncertainties. This combination underscores the importance of strategizing currency exposures effectively against the backdrop of these evolving market dynamics.
