1 CAD to INR From 2000 Till Now: Exchange Rates Changes

The journey of the Canadian Dollar against the Indian Rupee has been quite eventful. It reflects various global and domestic events. This blog is for you if you are a student who will be going to Canada or a traveler who wants to tour the Great White North. Knowing the historical fluctuations in the CAD to INR exchange rate is important for you. This guide takes a deep dive into the history of the exchange rate. Let's begin with the two important currencies. We'll discuss events, factors which influenced this exchange rate.

The Early 2000s: A Stable Beginning

During the year 2000, the exchange rate was about ₹30 for 1 CAD. The Indian economy was on a path of steady liberalization. The CAD maintained a stable value against the INR. It was partly due to good Canadian economic fundamentals. Gradual reforming of the Indian economy was also another factor. During this period, the Indian economy was growing steadily. Moderate inflation and a controlled fiscal deficit helped to keep the INR strong.

Also Read: How to Easily Send Money to Canada from India

The Mid-2000s: Rising Canadian Dollar

From 2004 to 2007, there had been continuous appreciation of the CAD against the INR. This resulted in an exchange rate of approximately ₹35-₹40. The continuous appreciation of the CAD was due to the good performance of Canada's economy. The Canadian economy was highly boosted by a high global demand for commodities. Especially oil and natural gas, which were at the top as two of the biggest movers of the Canadian economy. On the other hand, India also posted strong growth. But higher inflationary pressures and an increasing current account deficit had another slope. It created downward pressure on the INR currency.

The global financial crisis in 2008 seriously influenced the CAD to INR exchange rate. During this period, financial markets were collapsing worldwide. The CAD plunged against the INR and slumped down to around ₹40-₹45 toward the end of 2008. This was because of the financial crisis, which contracted global demand for commodities. With a strong hurt to the Canadian economy, thus causing a depreciation in CAD. However, the relatively strong banking system in Canada, and effective interventions by the government, helped stabilize the currency.

By 2009, the CAD began recovering and reached around ₹44 toward the end of the year. This was supported by strong fiscal policies in Canada and the partial recovery of the world economy. During this time, India had a host of problems, including high inflation and a burgeoning fiscal deficit, which kept the INR under pressure.

Also Read: Costs of studying abroad in Canada vs Australia

The 2010s: A Decade of Volatility

The 2010s have been a period of high volatility in the exchange rate of CAD to INR. In 2010, the exchange rate was at around ₹47, reflecting the strengthening CAD. This was added with rises in commodity prices and a recovering global economy. However, the growing trade deficit and rising inflationary fears had to be faced by the INR, thereby depreciating against the CAD.

In 2013, it further appreciated to around ₹55. However, this upward trend did not last for long. In 2014, when the global oil prices began their free fall, the Canadian economy was badly affected. The CAD started depreciating against the INR. In mid-2015, it had slipped to about ₹48.

In the latter half of the decade, the CAD to INR exchange rate varied between ₹47 and ₹55. The set up of multiple situations made volatility reigned high in the forex markets. It affected CAD and INR equally. It was on account of global economic uncertainties such as

• US-China trade tensions
• Brexit
• Fluctuating global oil prices.
• COVID-19 Pandemic and Beyond (2020-2024)

The COVID-19 pandemic brought the world's economy to a standstill in 2020, and so it did to the forex markets. At the start of 2020, one CAD was valued at about ₹54. But due to the massive pandemic, the economic activities got completely shut down. This lead to high volatility in the CAD to INR exchange rate.

It first depreciated against the rupee due to economic uncertainty and a sharp fall in global oil prices. However, after Canada undertook effective fiscal measures and the global economy recovered, CAD started strengthening. The exchange rate recovered by the end of 2020 to around ₹56.

It continued to appreciate in the year 2021 and 2022, touching almost ₹ 61. This was led by the global economic recovery and rising commodity prices. It was also coupled with strong economic fundamentals for Canada. Moreover, the INR had downward pressure due to high inflation, fiscal deficit, and pandemic repercussions in India.

Key Political, Economic, and Geopolitical Factors

Many factors affect the tendency of the CAD to INR exchange rate over a time period. Primarily,

1. 2000-2004: There was economic liberalization in India, with stable growth in Canada. This led to the exchange rate remaining stable.

2. 2008-2009: The sharp decline of CAD against INR due to the global financial crisis.

3. 2010-2014: Strong global commodity prices, especially oil made CAD stronger. INR was under pressure due to inflation and growing trade deficit.

4. 2015-2019: There had been Global fluctuations in oil prices and economic uncertainties. It also included trade tensions and Brexit which made the exchange rate volatile.

5. 2020-2024: The COVID-19 pandemic, global inflation, and geopolitical tensions drive recent trends in the CAD to INR exchange rate.

Understanding Historical Trends for Better Decisions

These historical trends in the CAD to INR exchange rate are quite informative for Indian travelers and students going to Canada. You can use this information for better decision-making. Whenever the conversion of currency takes place, this blog will help. Understanding how the exchange rate has varied over time can be crucial for budgeting your education or travel.

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