Exchange Rate Calculator

The exchange rate between the Brazilian Real (BRL) and the Indian Rupee (INR) has exhibited notable fluctuations over the past few months. This report analyzes the recent trends, identifies key factors influencing these movements, and offers insights into potential future developments.

Recent Exchange Rate Trends

As of March 19, 2025, the BRL/INR exchange rate stood at 15.27, marking a slight increase of 0.10% from the previous day. Over the past six months, the exchange rate has experienced significant volatility:

• High Point: 15.465 INR per BRL on October 1, 2024.
• Low Point: 12.688 INR per BRL on December 25, 2024.
• Average Rate: 14.631 INR per BRL during this period.

This data indicates a depreciation of the Brazilian Real against the Indian Rupee, with a notable decline of approximately 8.67% over the past year.

Factors Influencing the Exchange Rate

Several factors have contributed to the observed fluctuations in the BRL/INR exchange rate:

1. Economic Performance:

   • Brazil: The Brazilian economy has faced challenges, including political uncertainties and inflationary pressures, which have impacted investor confidence and the value of the Real.
   • India: India's economy has demonstrated resilience, with steady growth and controlled inflation, bolstering the strength of the Rupee.

2. Monetary Policies:

   • Divergent monetary policies between the two countries have influenced capital flows. Brazil's central bank has adjusted interest rates to combat inflation, while the Reserve Bank of India has maintained a more stable policy stance, affecting the attractiveness of each currency to investors.

3. Global Commodity Prices:

   • As a major exporter of commodities, Brazil's currency is sensitive to global commodity price fluctuations. Declines in prices for key exports like soybeans and iron ore have exerted downward pressure on the Real.

4. Trade Balances:

   • India's trade policies and its position as a net importer of commodities have also played a role. A favorable trade balance can strengthen the Rupee, while deficits may lead to depreciation.

Volatility and Risk Assessment

The BRL/INR exchange rate has exhibited high volatility, with a fluctuation of 24.13% over the past year. Such volatility indicates a higher risk of significant price changes, necessitating close monitoring for businesses and investors engaged in transactions involving these currencies.

Future Outlook

Predicting future exchange rate movements involves considering various economic indicators and potential geopolitical developments:

• Brazil's Economic Reforms: Implementation of structural reforms aimed at stabilizing the economy could bolster the Real.
• India's Growth Trajectory: Continued economic growth and prudent fiscal policies may further strengthen the Rupee.
• Global Economic Conditions: External factors, such as changes in global trade dynamics and commodity prices, will continue to influence the exchange rate.

Conclusion

The BRL/INR exchange rate has experienced significant fluctuations over the past few months, influenced by domestic economic conditions, monetary policies, and global market trends. Stakeholders should remain vigilant, considering both historical trends and current economic indicators, to make informed decisions regarding transactions involving these currencies.