USD/INR Analysis For 2017


Since the year of 2012, Indian Rupee has been falling tremendously against the US Dollar. Even though it surely had a positive impact on the economic growth as buying goods and services in India became much cheaper for the foreign nationals, it also works in the other direction. Traveling outside of India or purchasing items oversees became much more expensive than it used to be. During the year of 2016, the US dollar has been growing enormously against the other currencies, yet the growth against Indian Rupee hasn’t been so harsh. Let’s take a look at the possible scenarios of USD/INR exchange rate in 2017.

Trump bring volatility

Many people are carefully watching Trump-related news, especially the ones that are speculating on the Forex exchange market. As reported by www.topratedforexbrokers.com, since Trump became the president, the volume of FX account applications has increased by 54%.

This gives us an idea that during the first year of Trump’s governance, we can expect quite high volatility. Yet it is not very clearly where the currency rate will go, but it is certain that the movement will be strong.

Local government

It is also clear that the Indian government tries to make the financial system more stable. This should result in a more rigid control and, as a result, a strong financial health of the country. This might lead to some growth in the currency rate.

Rupee has actually been growing

Even though it may seem that INR is on a downtrend, it is only seen when comparing INR to USD. When we price INR in EUR, we can actually see a completely different pattern over the course of the last few years.

Indian Rupee is actually growing and it is growing quite fast.

The final thought

Currently, it seems that both Indian and US economies are growing really fast. The main questions is which economy will overtake in terms of the interest rates. It does look like the US dollar is at the top of its growth, hence it might be a good idea to sell USD for INR already today.