Exchange Rate Calculator

The exchange rate between the Canadian Dollar (CAD) and the Indian Rupee (INR) is a critical metric for businesses, investors, and individuals engaged in trade or financial activities between Canada and India. Over the past several months, this exchange rate has exhibited notable fluctuations influenced by various economic factors. This report provides an in-depth analysis of the CAD/INR exchange rate trends, underlying causes, and future projections.

Recent Trends in CAD/INR Exchange Rate

Fluctuations Over the Past Year

Between June 2024 and June 2025, the CAD/INR exchange rate has experienced significant volatility. In August 2024, the rate peaked at approximately 62.43 INR per CAD, marking the highest point in the past year. Conversely, in December 2024, the rate dipped to around 58.71 INR per CAD, the lowest point during this period. (poundsterlinglive.com)

Quarterly Analysis

• Q3 2024 (July to September): The exchange rate remained relatively stable, averaging around 61.5 INR per CAD.

• Q4 2024 (October to December): A downward trend was observed, with the rate declining to approximately 58.71 INR per CAD by mid-December.

• Q1 2025 (January to March): The rate rebounded, reaching about 61.4 INR per CAD in early February, before stabilizing around 60.5 INR per CAD by the end of March.

Factors Influencing the Exchange Rate

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

1. Economic Indicators

• Canada: Economic growth, employment rates, and inflation levels in Canada directly impact the strength of the CAD. Positive economic data tends to strengthen the CAD, while negative data can weaken it.

• India: Similarly, India's economic performance, including GDP growth, inflation, and trade balances, influences the INR. Strong economic indicators bolster the INR, whereas weaker data can lead to depreciation.

2. Monetary Policies

• Bank of Canada (BoC): Decisions regarding interest rates and monetary policy by the BoC affect the CAD's value. Rate hikes typically strengthen the CAD, while rate cuts can weaken it.

• Reserve Bank of India (RBI): The RBI's monetary policies, including interest rate adjustments and foreign exchange interventions, play a crucial role in determining the INR's strength.

3. Global Commodity Prices

Canada is a major exporter of commodities such as oil and natural gas. Fluctuations in global commodity prices can significantly impact the CAD. For instance, a rise in oil prices generally strengthens the CAD due to increased export revenues.

4. Trade Relations and Balances

The trade balance between Canada and India influences the demand and supply dynamics of both currencies. A trade surplus in favor of Canada increases demand for the CAD, while a surplus for India boosts demand for the INR.

5. Geopolitical Events

Political stability, international relations, and global economic events can cause investors to seek safe-haven currencies, affecting the CAD/INR exchange rate.

Future Projections

Forecasting exchange rates involves considerable uncertainty due to the multitude of influencing factors. However, based on current trends and economic indicators, the following projections are made:

Short-Term Forecast (Next 3 Months)

The CAD/INR exchange rate is expected to remain relatively stable, fluctuating between 60.3 and 60.9 INR per CAD. This stability is anticipated due to balanced economic performances in both countries and steady global commodity prices. (midforex.com)

Medium-Term Forecast (Next 6 to 12 Months)

Slight appreciation of the CAD against the INR is projected, with the exchange rate potentially reaching up to 61.5 INR per CAD by mid-2026. This projection assumes continued economic growth in Canada and stable monetary policies in both countries. (midforex.com)

Long-Term Outlook

Over the next two years, the exchange rate is expected to experience gradual appreciation, potentially reaching around 61.8 INR per CAD by the end of 2026. This outlook is contingent upon sustained economic growth in Canada, stable global commodity prices, and consistent monetary policies. (midforex.com)

Implications for Stakeholders

For Businesses

Companies engaged in trade between Canada and India should monitor exchange rate trends closely. Hedging strategies, such as forward contracts, can mitigate the risks associated with currency fluctuations.

For Investors

Investors with exposure to CAD or INR assets should consider the potential impact of exchange rate movements on their portfolios. Diversification and currency hedging can help manage associated risks.

For Individuals

Individuals remitting money between Canada and India should be aware of exchange rate trends to optimize the timing of their transactions, ensuring they receive favorable rates.

Conclusion

The CAD/INR exchange rate has exhibited notable fluctuations over the past year, influenced by economic indicators, monetary policies, global commodity prices, trade balances, and geopolitical events. While short-term stability is anticipated, medium to long-term projections suggest a gradual appreciation of the CAD against the INR. Stakeholders should remain vigilant, continuously monitoring economic developments and exchange rate trends to make informed financial decisions.