Wondering how the Canadian dollar fares alongside the Indian rupee? Here’s the information you need.
Today’s mid-market rate
Exchange rate history – Canadian dollar to Indian rupee
The Canadian dollar (CAD) came into official circulation in 1858, and Canadian parliament passed the Uniform Currency Act in April 1871 to make the Canadian dollar uniform across all provinces. The country first abandoned the gold standard temporarily during World War I and then definitively in 1933. The CAD turned to the floating system in 1950, but returned to peg with the US dollar in 1962. This peg lasted until 1970, and since then the CAD has followed the floating system.
The Indian rupee (INR) found use as official currency in various British controlled areas that it governed from India during the early and mid 20th century. Since its independence from the British in 1947 the country has witnessed two devaluations of its currency, once in 1966 and again in 1991. Like the CAD, the INR follows a floating exchange rate system.
Forecasting the CAD to INR exchange rate based on historical data
The past can be a good indicator of the future. Depending on sociopolitical atmosphere, interest and inflation rates, foreign trade, public debt, and export to import price ratios all influence exchange rates. Below you can find the average exchange rate for the past ten years.
|CAD = INR||50.7243||50.1775||55.2438||56.7739||53.3946||47.0870||44.3328||42.4656||40.7311||38.4919|
Data courtesy of X-Rates.
CAD historically strong against INR
In January 1994 the CAD traded at INR 23.79. It stayed largely around INR 22 and INR 23 until September 1995, when it crossed the INR 25 mark. After this the CAD witnessed a steady rise against the INR for some time, and by January 2000 it breached the INR 30 barrier.
The CAD continued to gain against the INR even after 2000, given the Indian government’s inability to deal with high public debt and rising inflation. The Canadian economy, on the other hand, received a boost due to strong global oil prices and a growing demand for its primary commodities.
Measures taken by the Indian government got the country’s growth rate to around 7% between 1997 and 2011, but the CAD continued to gain ground against the INR. In May 2006 the CAD crossed the INR 40 mark for the first time. The CAD fell below the INR 40 mark towards the end of 2006, but it crossed the INR 40 mark again in October 2007. Its value against the INR continued climbing for the next couple of years; in February 2011 it crossed the INR 46 mark, and by the end of 2011 it valued at more than INR 50.Back to top
Canadian dollar fluctuates against a weaker Indian rupee
The Indian government introduce economic reforms in 2012, which included increasing foreign participation levels in direct investment, but this did not stop the INR from its downward trend against the CAD. In December 2012 the CAD valued at INR 55.08.
The US Federal Reserve Board’s 2013 announcement that it was considering a cut-back on its foreign bond buying program had a detrimental effect on foreign investors in India. India, upon learning of this announcement, was quick to withdraw from the country. What followed was little short of panic as the INR went from trading at INR 53.61 to the CAD in May 2013, down to 61.49 against the CAD within 5 months.
While the INR fell even more against currencies, like the US dollar (USD) and British pound sterling (GBP), its fall against the CAD was still considerable. The following six months witnessed a return to stability of sorts, and by March 2014 the CAD traded at INR 54.87. In February 2015 the CAD fell below the INR 50 mark, and in August 2015 it traded at INR 49.39.
Analysts look at India’s long-term growth as moderately positive and its GDP growth expects to remain at around 7% in the coming years. Canada’s economy, on the other hand, continues to grapple with factors like an aging workforce, high unemployment levels, and high public debt. What can work in Canada’s favor, though, is that the ongoing demand for oil and other Canadian commodities can help offset the negative effect of its shrinking workforce in the coming years.