The Canadian Dollar is trading at 57.56 against the Indian Rupee this morning, down -0.14% with a YTD return of 5.07%. The open rate started at 57.72 compared to the previous close of 57.64. The pair’s daily range should stay between 57.56 and 57.73 and have a 52-week range between 51.07 and 57.73.
Over the last month, CAD has gained momentum pushing past the 57.60 support level which is also the highest the pair has traded since October 2018. Since March of 2019 CAD has steadily increased, there was a brief dip below the 52.00 level due to COVID-19 but the exchange rate has re-gained strength moving into 2021.
The US Dollar is trading against the INR at a rate of 73.52, down -0.50% with a YTD return of 3.01%. The pair’s open rate sits at 73.82 with a previous close at 73.90. USD/INR daily range is anticipated to stay between 73.53 and 73.83, the 52-week range will fluctuate between 70.52 and 76.91.
USD has decreased in strength since November where the exchange reached a high above the 74.60 support level. Since the beginning of the pandemic, USD has seen surprising growth against INR reaching record highs since the pair dropped below the 64.00 level in 2017. USD/INR will continue to follow bearish trading patterns as a drop is anticipated moving into the new year.
According to FXStreet ,the “view of a weaker rupee in the year ahead has not changed. Near-term downside risks for the rupee stem from the unwinding of elevated dollar short positions.” The Reserve Bank of India (RBI) has also begun to “monetize state government debt while ramping up operation twists and open market operations.”
By Surina Nath