CAD/INR Pair Trades Under Pressure Amid Rupee Vulnerabilities
The Canadian Dollar (CAD) has been under pressure against the Indian Rupee (INR), driven by recent policy shifts and rupee sentiment. The CAD/INR pair has edged lower, with traders pointing to vulnerabilities in the Indian rupee and evolving trade settlement frameworks as key factors.
According to HSBC India CEO Hitendra Dave, rupee weakness could trigger a negative feedback loop if capital inflows decline. This is a concern for policymakers, who are already grappling with the impact of recent changes to India's Special Rupee Vostro Accounts framework and trade policies on rupee liquidity and adoption.
The technical structure of the CAD/INR pair remains firmly bullish, however, with the pair trading above its 20-, 50-, and 200-day moving averages. Traders are closely watching the pair's performance in the coming days, with a potential breakout above ₹68.8967 seen as a key indicator of further upside.