CAD/INR trades flat as record ₹127B FCNRB deposits boost INR liquidity

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Canadian Dollar vs Rupee slides 0.48%

Highlights

Indian banks attracted a record $127 billion in foreign currency non-resident deposits between June 8 and August 31, 2026, strengthening rupee liquidity.
The rupee appreciated against major currencies as access to hard currency increased and crude oil prices pulled back.
CAD/INR displays persistent bearish pressure across all timeframes, with technical signals favoring further downside toward ₹67.6015 to ₹68.2809 in the near term.

Record foreign deposit inflow boosts rupee amid positive market sentiment

A record $127 billion in foreign currency non-resident (FCNRB) deposits were raised by Indian banks between June 8 and August 31, 2026, significantly improving liquidity in the country's banking system, according to Business Standard. This influx of foreign currency deposits has strengthened the rupee's position by increasing access to hard currency and supporting market stability. Additionally, the Indian rupee benefited from a pullback in crude oil prices and positive domestic market sentiment, contributing to its appreciation against major foreign currencies, as reported by Business Standard.

Bearish technical momentum as CAD/INR hits oversold indicators

CAD/INR is trading below the MA-20 and MA-50 on the h1 chart, as well as beneath the MA-200 on the daily timeframe. The Ichimoku Kijun level stands at ₹68.149, acting as immediate resistance. Momentum remains weak, with MACD and ADX both showing Sell signals. RSI is deep in oversold territory and this reading is confirmed by oversold levels in both Stoch RSI and CCI, while Bull/Bear Power and the Awesome Oscillator both indicate clear seller dominance.

Downside bias favored as support risks outweigh reversal chances

In the short term, CAD/INR is likely to consolidate within the immediate trading band of ₹67.6015 to ₹68.2809, reflecting typical volatility around current levels. The probability of an upward reversal is very low, while further declines are more likely if the price breaks below the established support. A decisive move above the Ichimoku Kijun resistance at ₹68.149 would be required to shift momentum into bullish territory, but this scenario appears unlikely given prevailing conditions.

Viktoras Karapetjanc, expert at Traders Union, sees strong macro and sentiment support for INR after the record $127 billion FCNRB deposit inflow. He believes the improved liquidity and resilient domestic sentiment are critical to current rupee strength against the Canadian Dollar. Technical indicators remain bearish on CAD/INR, but ongoing positive fundamentals for INR act as a stabilizing force. "If Indian liquidity remains robust and sentiment holds, I expect INR to stay strong and limit upside in CAD/INR for now."

Earlier, analysts noted that CAD/INR maintained a broadly bullish technical posture, though upside was limited by overbought conditions and external market factors. The current analysis signals a notable shift to persistent downside pressure, with further declines likely unless the pair decisively reclaims the ₹68.149 resistance level.

Source of Data: CAD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.