Dublin: The euro is on the verge of reaching a historic milestone against the Indian rupee, with exchange rates nearing ₹100 for the first time ever. On Sunday, the EUR/INR rate stood at ₹99.47, slightly lower than ₹99.62 recorded on June 13. However, foreign exchange analysts warn that the symbolic ₹100 mark could be breached as early as Tuesday.
Forecasts from currency experts suggest the euro could rise to ₹99.90–₹100.10 in the coming sessions. If the exchange rate breaks the ₹100.30 resistance level, analysts see potential for a surge toward ₹101.
The euro’s strength stems from contrasting monetary policy moves between the European Central Bank (ECB) and the Reserve Bank of India (RBI). Recent ECB efforts to curb inflation have supported the euro, while the RBI’s decision to cut the repo rate to 5.5% on June 6—its most significant cut in two years—has weakened the rupee.
The rate cut was aimed at stimulating domestic demand and economic growth, which has shown signs of slowing. However, the wider interest rate differential between India and the Eurozone has increased pressure on the rupee, contributing to the current currency trajectory.
Despite this, some analysts believe the euro may not sustain momentum beyond ₹100. With mixed signals from the Eurozone economy and India’s central bank continuing to intervene in the forex markets, a brief peak followed by a pullback is possible, keeping the euro just under the 100 threshold in the near term.
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