1 CAD is still trading against USD at a rate of 0.76 as the week progresses, which has increased by 10% since March when the exchange rate was 0.69. The US dollar is losing ground against a broad basket of currencies during this presidential election.
Analysts are reporting that “the US Dollar Index is trying to settle below the support at 93.00 on hopes that US Republicans and Democrats will be able to reach consensus on the new stimulus deal.” If the two parties can’t agree on a stimulus by today, then the US will not have additional COVID economic relief packages until a President is elected.
Both Canadian and American low unemployment rates are impacting the currency market as both have set interest rates close to zero; “the interest rate differential, measured from CAD/USD futures versus the spot currency, has averaged 6 basis points annualized for the past several months.”
The Canadian dollar has an exchange rate of 56.24 against the Indian Rupee today and forecasted to continue increasing as November approaches.
The US Dollar is sitting at 73.76 against INR; despite “the pair’s ability to stay beyond a falling trend line from September 24, at 73.27 now, keeps the USD/INR bulls hopeful of attacking the monthly high.”
The Fibonacci retracement of USD/INR is 61.8%, “the pair’s September 24 to October 9 downside, at 73.62, followed by the October 7 high of 73.64, will raise bars for the USD/INR bull’s entry past 73.60.”
With India’s large COVID case numbers and rising oil prices, the rupee faces increasing pressure and forecasted to maintain low exchange rates throughout the festive season.
By Surina Nath