Exchange Rate Calculator

The exchange rate between the Indian Rupee (INR) and the Euro (EUR) has experienced notable fluctuations over the past few months. This report analyzes the recent trends, underlying factors influencing these movements, and provides insights into the future outlook of the INR/EUR exchange rate.

Recent Trends in INR/EUR Exchange Rate

Over the past six months, the INR/EUR exchange rate has exhibited a downward trend, indicating a depreciation of the Indian Rupee against the Euro. On January 2, 2025, the exchange rate stood at approximately 1 INR to 0.01135 EUR. By June 25, 2025, it had declined to around 1 INR to 0.009975 EUR, marking a decrease of about 10.95% over this period. (exchange-rates.org)

Factors Influencing the Exchange Rate Movements

Several factors have contributed to the observed depreciation of the Indian Rupee against the Euro:

1. Economic Indicators: India's economic performance, including GDP growth rates, inflation levels, and trade balances, plays a crucial role in determining the strength of the Rupee. Any signs of economic slowdown or rising inflation can lead to a weaker currency.

2. Monetary Policies: Decisions by the Reserve Bank of India (RBI) regarding interest rates and monetary policies influence investor confidence and capital flows. Similarly, the European Central Bank's (ECB) policies affect the Euro's strength.

3. Global Market Sentiments: Geopolitical events, global economic uncertainties, and changes in investor risk appetite can lead to capital outflows from emerging markets like India, resulting in currency depreciation.

4. Trade Relations: The trade balance between India and the Eurozone impacts currency demand. A trade deficit can exert downward pressure on the Rupee.

Historical Context

To provide a broader perspective, it's insightful to look at the INR/EUR exchange rate over the past few years:

• 2021: The exchange rate fluctuated between 1 INR to 0.011 EUR and 0.012 EUR, with an average of 0.0114 EUR. (exchangerates.org.uk)

• 2022: The Rupee experienced slight appreciation, with rates ranging from 1 INR to 0.0113 EUR to 0.0128 EUR, averaging 0.0121 EUR. (exchangerates.org.uk)

• 2023: The exchange rate remained relatively stable, averaging around 1 INR to 0.0113 EUR. (exchangerates.org.uk)

Future Outlook

Predicting future exchange rate movements involves considerable uncertainty due to the interplay of various dynamic factors. However, some potential scenarios include:

• Continued Depreciation: If India's economic indicators show signs of weakening, or if global investors become more risk-averse, the Rupee may continue to depreciate against the Euro.

• Stabilization: Should the RBI implement effective monetary policies and India's economic performance improves, the exchange rate may stabilize around current levels.

• Appreciation: In the event of significant economic reforms, increased foreign direct investment, or a stronger trade balance, the Rupee could appreciate against the Euro.

Conclusion

The INR/EUR exchange rate has seen a notable depreciation over the past six months, influenced by a combination of domestic economic factors, monetary policies, and global market sentiments. While historical data provides context, future movements will depend on India's economic trajectory, policy decisions, and global economic conditions. Stakeholders should closely monitor these factors to make informed decisions regarding currency exposure and international transactions.