The Canadian Dollar is trading at 57.72 against the Indian Rupee this morning, down -0.31% with a YTD return of 0.71%. The currency pair’s open rate was 57.99, up from their previous close at 57.89. CAD/INR is expected to move between 57.70 and 57.99 throughout the day, and over the next 52 days, the pair is forecasted to fluctuate between 51.07 and 58.25.
CAD/INR has sustained growth throughout the pandemic and continues to do so moving into 2021. When the pandemic hit markets last March, the pair’s exchange rate was trading at the 52.00 level but has managed to follow an upward trend. In June 2020 CAD/INR reached the 56.00 level and by December reached the 57.00 range.
Now at the highest exchange rate seen in over 5 years, CAD/ INR is expected to continue bullish growth throughout the month as INR and Indian stocks have plummeted along with other markets across Asia.
The global selloff in risk assets has caused North American yields to surge, “the yields on domestic benchmark 10-year bonds also spiked” but Live Mint reported that there is a warning about “the outlook of interest rates and inflation.”
The Indian stock market index Sensex recently “plunged nearly 2000 points” which is sparking panic in the global bond market as the sharp rise in yields have “spooked investors amid fears of interest rate cycle reversal” according to Hemang Janu, Head of Equity Strategy, Broking and Distribution at Motilal Oswal Financial Services.
With crude oil backing the Canadian Dollar and placing more pressure on the Indian Rupee, CAD/INR will continue to see growth until India reduces the demand for risk assets, stabilizes inflation rates and releases more economic data about the country’s GDP for Q3 2021.
By Surina Nath