The Canadian Dollar is trading at 57.02 against the Indian Rupee today, down -0.01% with a YTD return of -0.50%. The pair’s open rate was 57.11, slightly higher than the previous close at 57.03.CAD/INR will have a day range that sits within the 57.01-57.12 range, the 52-week range is anticipated to fluctuate between 51.07 and 57.93.
CAD/INR has been recovering well since October when the exchange rate dropped to the 54.00 range, jumping to the 55.00 level in November then again to the 57.00 level in December. The currency pair has been able to stay within the 57.00 level throughout January dipping slightly at the end of the month to the 56.00 range but, as February begins CAD/INR has been moving in an upward trend.
Bearish trading tendencies have followed CAD/INR into 2021 as economies continue to experience change due to the coronavirus pandemic. With the spread of the vaccine in both Canada and India and case numbers on the decline, CAD/INR will be on the radar for bulls in the coming weeks.
INR has been on the road to recovery with “optimism of higher growth projection. However, concern surrounding fiscal deficit will likely keep a check on the local unit” according to IIFL Securities. The rupee has also been trading in a narrow range “as traders remained cautious ahead of the Reserve Bank of India (RBI) monetary policy scheduled on Friday.”
Justin Trudeau announced that Canada has signed its first deal to allow a foreign COVID-19 vaccine to be manufactured domestically; the Globe and Mail reported that Scott Smith, managing partner at Viewpoint Investment Partners said that “we’re seeing a broad-based rally in risk appetite today… which is boosting the value of the loonie.”
With the Canadian employment report for last month due on Friday and oil prices climbing to a one-year high, traders in favor of CAD/INR are likely to experience stable returns as the month progresses.
By Surina Nath