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Over the past six months, the exchange rate between the Indian Rupee (INR) and the New Zealand Dollar (NZD) has exhibited notable fluctuations, reflecting the dynamic interplay of economic factors influencing both currencies. This report delves into the recent trends, underlying causes, and potential future outlook of the INR/NZD exchange rate.

Recent Trends in INR/NZD Exchange Rate

Between December 27, 2024, and June 25, 2025, the INR/NZD exchange rate experienced significant variability:

• Highest Rate: On April 7, 2025, the exchange rate peaked at 1 INR = 0.02099 NZD.

• Lowest Rate: The rate reached its lowest point on June 18, 2025, at 1 INR = 0.01914 NZD.

• Average Rate: Over this period, the average exchange rate was approximately 1 INR = 0.02005 NZD.

This data indicates a depreciation of the Indian Rupee against the New Zealand Dollar by approximately 7.34% over the six-month period. (exchange-rates.org)

Factors Influencing the Exchange Rate

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

1. Economic Performance:

• India: India's economic growth has been robust, driven by strong domestic demand and a burgeoning technology sector. However, challenges such as inflationary pressures and fiscal deficits have occasionally weighed on the Rupee's strength.

• New Zealand: New Zealand's economy has benefited from strong agricultural exports and a resilient housing market. The Reserve Bank of New Zealand's monetary policies aimed at controlling inflation have also played a role in strengthening the NZD.

1. Interest Rate Differentials:

The difference in interest rates set by the Reserve Bank of India (RBI) and the Reserve Bank of New Zealand (RBNZ) influences investor behavior. Higher interest rates in New Zealand attract foreign capital, increasing demand for the NZD and contributing to the Rupee's depreciation.

1. Trade Balances:

India's trade deficit, characterized by higher imports than exports, exerts downward pressure on the Rupee. Conversely, New Zealand's trade surplus, bolstered by strong dairy and meat exports, supports the NZD.

1. Global Economic Conditions:

Global events, such as changes in commodity prices, geopolitical tensions, and shifts in investor sentiment, impact both currencies. For instance, a global increase in commodity prices can benefit New Zealand's export-driven economy, strengthening the NZD.

Historical Context

To provide a broader perspective, examining the INR/NZD exchange rate over the past few years reveals:

• 2021: The exchange rate fluctuated between 1 INR = 0.0184 NZD and 1 INR = 0.0198 NZD, with an average of 1 INR = 0.0191 NZD. (exchangerates.org.uk)

• 2022: The rate ranged from 1 INR = 0.0187 NZD to 1 INR = 0.0219 NZD, averaging 1 INR = 0.0201 NZD. (exchangerates.org.uk)

• 2024: In January 2024, the exchange rate varied between 1 INR = 0.0190 NZD and 1 INR = 0.0198 NZD, averaging 1 INR = 0.0195 NZD. (exchangerates.org.uk)

These historical trends highlight the INR/NZD exchange rate's sensitivity to economic developments and policy decisions in both countries.

Future Outlook

Predicting future exchange rate movements involves considering various factors:

• Monetary Policies: The RBI's and RBNZ's future interest rate decisions will significantly influence the exchange rate. Should the RBNZ continue to raise rates to combat inflation, the NZD may strengthen further against the INR.

• Economic Indicators: Indicators such as GDP growth rates, inflation, and employment figures in both countries will provide insights into potential currency movements.

• Global Events: Developments like changes in global trade policies, commodity price fluctuations, and geopolitical tensions will also impact the exchange rate.

In conclusion, the INR/NZD exchange rate has experienced notable fluctuations over the past six months, influenced by a complex interplay of economic factors. Staying informed about economic developments and policy decisions in both India and New Zealand is crucial for anticipating future trends in this currency pair.