The Indian Rupee (INR) recovered at the beginning of the European trading session on Monday after India released stronger GDP data. Such positive economic data signals robust economic development and increases investors’ confidence in the stability of the currency.
Background: Importance of Strong GDP Data
The Gross Domestic Product (GDP) is a key indicator of a country’s economic health. Higher-than-expected GDP growth indicates a strong economy, which attracts foreign investors. These investors increasingly invest in Indian assets, boosting demand for the Rupee and supporting its value against other currencies.
Impact on the Exchange Rate
In recent days, the EUR/INR exchange rate was around 96 to 97 Rupees per Euro. The recovery of the Rupee is reflected in its stability or slight gains against the Euro and other major currencies like the Swiss Franc or the Polish Zloty.
- EUR/INR: The pair last quoted around 96.4 to 97.2 INR per Euro.
- INR/CHF: The rate stood at about 0.00958 CHF per INR (as of April/May 2025).
- INR/PLN: Currently, 1 INR is approximately 0.0438 PLN.
Strong GDP data often leads to an appreciation tendency of the domestic currency as it strengthens confidence in the economic future and promotes capital inflows.
Market Reactions
Investors react sensitively to macroeconomic data like GDP growth. Positive surprises often lead to:
- Increased demand for Indian bonds and stocks
- Capital inflows from abroad
- Strengthening of the exchange rate
These factors help keep the Indian Rupee stable or even recovering despite global uncertainties.
Conclusion
The recent recovery of the Indian Rupee is largely due to strong GDP figures. They underscore the resilience of the Indian economy and make the country more attractive to international investors. This leads to increased demand for INR-based assets and positively supports the price trend.