Exchange Rate Calculator

The exchange rate between the Indian Rupee (INR) and the Canadian Dollar (CAD) is a crucial metric for businesses, investors, and individuals engaged in trade, investment, or remittances 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

As of July 2, 2025, the INR/CAD exchange rate stood at approximately 1 INR = 0.016925 CAD. This reflects a depreciation of the Indian Rupee against the Canadian Dollar compared to earlier months. For instance, on April 15, 2025, the exchange rate was 1 INR = 0.01628 CAD, indicating a strengthening of the Rupee during that period. (exchange-rates.org)

In the first quarter of 2025, the exchange rate fluctuated between 1 INR = 0.0164 CAD and 1 INR = 0.0168 CAD. Notably, on March 25, 2025, the rate was 1 INR = 0.0167 CAD. (valutafx.com) These variations suggest a period of relative stability with minor fluctuations.

Factors Influencing the Exchange Rate

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

1. Economic Performance and Monetary Policies: India's economic growth rate and monetary policy decisions by the Reserve Bank of India (RBI) significantly impact the Rupee's value. Similarly, the Bank of Canada's monetary policies and Canada's economic indicators influence the Canadian Dollar. Divergent economic performances and policy decisions between the two countries can lead to exchange rate volatility.

2. Trade Balances: The trade balance between India and Canada affects currency demand. A trade surplus in India increases demand for the Rupee, potentially strengthening it against the CAD, while a trade deficit can have the opposite effect.

3. Global Commodity Prices: Canada's economy is heavily reliant on commodities, particularly oil. Fluctuations in global oil prices can influence the CAD's strength. For instance, a rise in oil prices typically strengthens the CAD, affecting the INR/CAD exchange rate.

4. Inflation Rates: Differing inflation rates between India and Canada can impact the exchange rate. Higher inflation in India relative to Canada can depreciate the Rupee against the CAD.

5. Geopolitical Events and Market Sentiment: Political stability, international relations, and investor sentiment play roles in currency valuation. Events such as trade agreements, diplomatic tensions, or global economic uncertainties can lead to fluctuations in the exchange rate.

Implications and Outlook

Understanding the dynamics of the INR/CAD exchange rate is essential for stakeholders:

• Businesses: Companies engaged in import-export activities between India and Canada need to monitor exchange rate trends to manage costs and pricing strategies effectively.

• Investors: Currency fluctuations can impact returns on investments denominated in foreign currencies. Investors should consider exchange rate trends when making investment decisions involving assets in India or Canada.

• Individuals: For individuals remitting money between the two countries, exchange rate movements can affect the value received. Staying informed helps in timing transactions to maximize value.

Looking ahead, the INR/CAD exchange rate will likely continue to be influenced by the aforementioned factors. Monitoring economic indicators, central bank policies, and global market trends will be crucial in anticipating future movements.

In conclusion, the INR/CAD exchange rate has experienced fluctuations over the past few months due to a complex interplay of economic, political, and market factors. Staying informed and understanding these dynamics is vital for making informed financial decisions related to transactions between India and Canada.