Exchange Rate Calculator

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

Recent Exchange Rate Trends

Between September 2024 and March 2025, the INR/CAD exchange rate experienced a range of movements:

• Highest Rate: On December 18, 2024, the exchange rate peaked at 1 INR = 0.01696 CAD.

• Lowest Rate: The lowest point was recorded on September 24, 2024, at 1 INR = 0.01607 CAD.

• Average Rate: Over this period, the average exchange rate was approximately 1 INR = 0.01653 CAD.

This data indicates a general appreciation of the Indian Rupee against the Canadian Dollar during these months. (exchange-rates.org)

Factors Influencing the Exchange Rate

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

1. Economic Performance:

• India: India's economy showed robust growth in late 2024, driven by strong domestic demand and increased foreign investment. This economic strength bolstered the Rupee's value.

• Canada: Canada faced economic challenges during the same period, including a slowdown in key sectors such as energy and manufacturing, which impacted the Canadian Dollar.

1. Interest Rate Differentials:

The Reserve Bank of India (RBI) maintained a stable interest rate policy to support growth, while the Bank of Canada adjusted rates in response to inflationary pressures. These differing monetary policies influenced investor behavior and capital flows, affecting the exchange rate.

1. Trade Balances:

India's trade deficit narrowed due to increased exports, particularly in the technology and pharmaceutical sectors. Conversely, Canada's trade balance was affected by declining commodity prices, leading to a weaker Canadian Dollar.

1. Global Commodity Prices:

As a major exporter of commodities, Canada's economy is sensitive to global price changes. The decline in oil and natural gas prices during this period negatively impacted the Canadian Dollar.

Implications and Outlook

The appreciation of the Indian Rupee against the Canadian Dollar has several implications:

• For Indian Exporters: A stronger Rupee may make Indian goods more expensive in Canada, potentially affecting export competitiveness.

• For Canadian Importers: A weaker Canadian Dollar increases the cost of importing goods from India, which could lead to higher prices for consumers.

• Investment Decisions: Investors may need to reassess their portfolios, considering currency risks and opportunities arising from these exchange rate movements.

Looking ahead, the INR/CAD exchange rate will likely continue to be influenced by economic policies, trade dynamics, and global market conditions. Stakeholders should monitor these factors closely to make informed financial decisions.

In summary, the INR/CAD exchange rate has shown significant fluctuations over the past few months, driven by economic performance, monetary policies, trade balances, and commodity prices. Understanding these factors is essential for businesses and investors engaged in Indo-Canadian economic activities.