Forecasts for NZD to INR
Recent exchange rate forecasts for the New Zealand dollar (NZD) to Indian rupee (INR) reflect a complex interplay of geopolitical tensions and market sentiment. Analysts noted that the NZD was under pressure due to the announcement of a 10% tariff on imports from New Zealand by U.S. President Donald Trump. Such tariffs are likely to dampen demand for New Zealand commodities, which could negatively impact the NZD. The currency has shown volatility, moving in conjunction with the Australian dollar (AUD), suggesting that risk appetite remains a significant factor for its performance.
Currently priced at 50.37 INR, the NZD is 1.5% above its three-month average of 49.65, indicating a stable trading range from 47.65 to 51.11 INR. Experts suggest that the resilience of the NZD in this range may be attributed to its correlation with the AUD and reliance on commodity markets, but the potential for new tariffs could create further uncertainty.
On the other hand, the Indian rupee faces a challenging environment amid mixed influences stemming from the U.S. tariffs. Analysts indicate that the rupee has been weakened as investors move away from Asian currencies in light of a stronger U.S. dollar driven by expectations of U.S. economic growth spurred by Trump's policies. With India being a significant oil importer, any increase in global oil prices poses risks of inflation, further complicating the rupee's position.
Market analysts observe that the risks for the INR are currently "broadly balanced" but also note that the currency is under pressure due to external shocks from U.S. trade policy. As such, the Indian rupee, along with the New Zealand dollar, is bracing for a phase of increased volatility influenced by ongoing trade tensions and economic developments, making the forecast for the NZD/INR pair particularly uncertain in the near term.
