1 CAD is trading at 55.90 against the Indian rupee today, staying relatively stable compared to last week and forecasting to increase in the weeks to come. The stock inflow and asset sales in India has already seen an influx of billions, support stemming from a rare current account surplus according to Bloomberg.
Throughout the pandemic, the Indian rupee has accelerated more than 2% in the third quarter with a decreasing trade deficit. The rupee should continue to stabilize in the fourth quarter and as the final months of 2020 approach.
Canadian economic recovery is possible as 1 CAD is currently trading at 0.65 against the Euro which is much higher than the start of the year. Oil prices still remain low though the market has been relatively stable, which makes Canadian inflation probable.
The Canadian dollar (CAD) has been improving as the U.S dollar settles at an exchange rate of 0.76 during this election period. The challenges are increasing for the American economy as political factors stir the U.S market, while the loonie is moving in an upward trajectory as the Canadian unemployment rate declines.
The Canadian dollar index is at 76.2 up 0.04 while the American dollar index sits at 93.17, up 0.11. Though the USD is losing momentum compared to a broad basket of currencies, there is an expected rebound by the end of the year.
The global impact from the trade war is sending CAD lower than expected, but USB Vassili Serebriakov notes that “elections are rarely major trend-setting events for CAD and we expect economic developments to move back to the forefront as the October Bank of Canada (BoC) the meeting draws closer.”
Fluctuations in both the U.S and CAD exchange rates can be related to elections and new economic programs implemented during quarantine periods, but evidently the BoC’s interest the rate decision will have a bigger impact.
By Surina Nath