Conversion Rate Of Canadian Dollar To Indian Rupee
Introduction
The Canadian dollar (CAD) and Indian rupee (INR) are two major currencies in the global market. The exchange rate between the two currencies plays a vital role in international trade and investment. In recent years, the CAD to INR conversion rate has been fluctuating due to various economic and political factors. This article aims to provide an overview of the current conversion rate, factors affecting it, and its impact on trade and investment between Canada and India.
Current Conversion Rate
As of August 2021, the CAD to INR conversion rate is around 60.5. This means that one Canadian dollar can be exchanged for approximately 60.5 Indian rupees. However, the exchange rate is not fixed and can fluctuate depending on various economic and political factors.
Factors Affecting Conversion Rate
The conversion rate between CAD and INR can be affected by various factors such as inflation, interest rates, trade balance, political stability, and global events. For instance, if the Canadian economy is doing well, the demand for CAD will increase, and its value will go up relative to other currencies, including INR. Similarly, if there is political instability in India, investors may withdraw their investments, causing the value of INR to go down relative to CAD.
Impact on Trade and Investment
The CAD to INR conversion rate has a significant impact on trade and investment between Canada and India. A higher CAD to INR conversion rate means that Canadian goods and services become more expensive for Indian consumers, making it harder for Canadian businesses to export to India. Conversely, a lower CAD to INR conversion rate makes Canadian goods and services more affordable for Indian consumers, boosting Canadian exports to India.
Moreover, the conversion rate affects investment between the two countries. A higher CAD to INR conversion rate means that Indian investors need to pay more Indian rupees to buy Canadian assets, such as stocks and real estate. This may discourage Indian investors from investing in Canada. Conversely, a lower CAD to INR conversion rate makes Canadian assets more affordable for Indian investors, encouraging them to invest in Canada.
Historical Trends
The CAD to INR conversion rate has been fluctuating over the years. In January 2010, one Canadian dollar was worth approximately 45 Indian rupees. By September 2012, the conversion rate had increased to around 56.5. However, in August 2013, the conversion rate had dropped to around 53.5. Since then, the conversion rate has been fluctuating between 55 and 60.
Conclusion
The CAD to INR conversion rate is a crucial factor in international trade and investment between Canada and India. It is affected by various economic and political factors and can fluctuate over time. Businesses and investors need to keep track of the conversion rate to make informed decisions about trade and investment between the two countries.