Euro Expected to Stay Strong Against Rupee Amid Global Shifts
Mumbai – Economists and market analysts predict that the euro will maintain its strength in the global currency market throughout the remainder of the year, buoyed by a weakening US dollar and shifting investor sentiment. After reaching a record high of ₹101.19 in July, the EUR/INR exchange rate is forecast to hover near or above the ₹100 mark for the rest of 2025.
Euro’s Strength Supported by Dollar Weakness and Global Sentiment
The sustained depreciation of the US dollar, combined with favourable global macroeconomic conditions, has created an environment conducive to euro strength. Economic forecasts suggest the euro will trade in a range between ₹99.03 and ₹107.75, with an average of ₹105.58 projected by December.
Forecasting platforms remain largely bullish:
- Coincodexa anticipates a potential rise to ₹107.13 under favourable conditions.
- Long Forecast expects a steady climb toward the ₹107–108 range by year-end.
- Traders Union estimates the euro will close the year at ₹101.49.
- Wallet Investor projects a range between ₹100.56 and ₹102.13.
While the broader trend is upward, some models do suggest a potential dip. Exchange-Rates.org.uk forecasts a short-term correction to ₹98.79 by September. However, most analysts agree that the fourth quarter will mark a rebound, with expectations of a rise above ₹103 between October and December.
Underlying Economic Drivers and Technical Trends
A mix of global and local economic factors are driving the euro’s resilience:
The Federal Reserve’s delay in cutting interest rates has kept pressure on the dollar, indirectly boosting the euro.
Indian exporters are realigning their hedging strategies toward the euro and British pound in response to rising volatility and the dollar’s softness.
Technical analysts at Lite Finance note that the euro is currently trading within an upward channel, with momentum likely to persist.
Impact on Indian Economy and Consumers
The strong euro has already begun to influence Indian markets:
Outbound tourism to Europe has become more expensive for Indian travellers.
Importers with euro-denominated contracts are experiencing squeezed profit margins.
On the flip side, expatriates remitting money to India in euros are benefiting from favourable exchange rates.
Call for Vigilance Amid Market Uncertainty
Analysts emphasise the need for close monitoring of inflation trends, interest rate decisions, and capital flows. Upcoming policy guidance from the European Central Bank and the Reserve Bank of India will be key to determining the euro’s trajectory in the final quarter.
Despite some short-term uncertainties, the overall consensus suggests that the euro will remain above ₹100 into early 2025. If external macroeconomic conditions remain supportive, the euro is likely to strengthen further, with several projections pointing toward the ₹105–107 range.
Irish Samachar English News
{OR} Kindly click to follow the Irish Samachar News channel on WhatsApp
Comments are closed.