The exchange rate forecast for the Saudi Riyal (SAR) to Indian Rupee (INR) indicates a cautious approach amid mixed influences affecting both currencies. Recent developments in U.S. trade policy, particularly the imposition of a 26% tariff on goods from Taiwan, have injected additional uncertainty into the currency markets. Analysts noted that the Indian rupee is currently experiencing pressure due to concerns over surging energy prices, which are likely to spur inflation and interest rate hikes in India, a considerable oil importer.
In the context of these mixed signals, the Indian rupee is broadly perceived as facing balanced risks. A bank currency trader highlighted that the rupee's current level reflects a mixture of influences, contributed in part by U.S. President Donald Trump's trade policies and the associated reaction of global markets. Furthermore, heightened geopolitical tensions, particularly following recent air strikes between India and Pakistan, may also contribute to fluctuations in the INR going forward.
From a technical perspective, the SAR to INR exchange rate recently reached 60-day highs near 22.94, which is slightly above its 3-month average of 22.81. This trading has remained relatively stable within a narrow range of 3.4%, reflecting a consistent market sentiment despite external pressures.
Economists suggest that expectations surrounding U.S. growth, driven by anticipated policies such as lower corporate taxes and deregulation, continue to bolster the strength of the U.S. dollar. This dynamic has led to investors shedding Asian currencies, including the Indian rupee, which may further influence the SAR/INR exchange rate in the near term. The expectation of increased tariffs on specific countries, particularly China, could also introduce broader volatility into the Asian currency landscape, impacting the INR as it navigates these turbulent waters.
Overall, experts advise close monitoring of geopolitical developments and U.S. trade policies, as these factors are likely to play critical roles in future SAR to INR exchange rate movements.