Exchange Rate Calculator

The exchange rate between the Canadian Dollar (CAD) and the Indian Rupee (INR) has experienced fluctuations over the past few months, influenced by various economic factors. This report provides an analysis of the CAD/INR exchange rate trends from January to April 2025, highlighting key movements and underlying causes.

Exchange Rate Trends: January to April 2025

January 2025:

• Lowest Rate: On January 3, 2025, the CAD/INR exchange rate reached its lowest point of the month at ₹59.384 per CAD.

• Highest Rate: The highest rate was observed on January 13, 2025, at ₹60.361 per CAD.

• Average Rate: Throughout January, the average exchange rate was approximately ₹59.935 per CAD.

The fluctuations in January can be attributed to seasonal economic activities and initial market reactions to fiscal policies introduced at the beginning of the year.

February 2025:

• Highest Rate: The peak exchange rate occurred on February 7, 2025, at ₹61.402 per CAD.

• Average Rate: The average rate for February was around ₹60.913 per CAD.

The strengthening of the Canadian Dollar against the Indian Rupee during this period may be linked to positive economic indicators from Canada, such as favorable employment data and GDP growth, coupled with increased global demand for commodities.

March 2025:

• Lowest Rate: On March 13, 2025, the exchange rate dipped to ₹60.224 per CAD.

• Highest Rate: The highest rate in March was ₹60.966 per CAD on March 6, 2025.

• Average Rate: The average exchange rate for March stood at ₹60.546 per CAD.

The slight depreciation of the Canadian Dollar in mid-March could be associated with market corrections and adjustments following the strong performance in February.

April 2025:

• Highest Rate: On April 9, 2025, the exchange rate reached ₹61.1844 per CAD.

• Average Rate: The average rate for April was approximately ₹60.293 per CAD.

The appreciation observed in early April may be due to continued positive economic data from Canada and a stable global economic environment.

Factors Influencing the CAD/INR Exchange Rate

Several factors have contributed to the fluctuations in the CAD/INR exchange rate during the first quarter of 2025:

1. Commodity Prices: Canada's economy is heavily reliant on commodities, particularly oil. Increases in global oil prices can strengthen the Canadian Dollar, as higher revenues from oil exports improve the country's trade balance.

2. Interest Rate Differentials: The monetary policies of the Bank of Canada and the Reserve Bank of India, including interest rate decisions, influence investor capital flows. Higher interest rates in Canada relative to India can attract investors seeking better returns, leading to an appreciation of the CAD against the INR.

3. Economic Indicators: Key economic data such as GDP growth, employment rates, and inflation figures from both countries impact investor confidence and currency valuations. Positive economic indicators in Canada can bolster the CAD, while strong economic performance in India can strengthen the INR.

4. Global Economic Conditions: Global events, including geopolitical tensions, trade agreements, and economic crises, can lead to risk aversion or appetite among investors, affecting currency exchange rates.

5. Market Sentiment: Investor perceptions and speculative activities can cause short-term fluctuations in exchange rates, as market participants react to news and forecasts.

Conclusion

The CAD/INR exchange rate from January to April 2025 has shown variability influenced by a combination of domestic economic performance, global commodity prices, interest rate differentials, and broader economic conditions. Understanding these factors is crucial for businesses and investors engaged in transactions between Canada and India, as they can significantly impact the cost and profitability of cross-border activities.