The SAR to INR exchange rate shows a bullish market bias, trading at 14-day highs near 24.07, which is 1.1% above its 3-month average.
The key drivers for this trend include the interest rate differential where Saudi Arabia maintains a stable policy, while India has mixed rate expectations due to inflation concerns. Additionally, the weakening outlook for the INR suggests potential depreciation as forecasts indicate it could reach up to 94 per USD by the end of 2026.
In the near term, the SAR to INR is expected to remain within a stable range, reflecting the recent trading consistency from 23.39 to 24.24.
An upside risk could come from improved trade negotiations between India and the US, potentially boosting the INR's strength. Conversely, a downside risk includes ongoing foreign portfolio outflows from India, which may exert further pressure on the rupee.