The recent exchange rate dynamics between the Indian Rupee (INR) and the Canadian Dollar (CAD) display a complex interplay influenced by various economic factors. As of November 11, 2025, the INR to CAD exchange rate stands at 0.015739, just below its three-month average. This rate has exhibited stability over the past months, trading within a narrow range of 2.6% from 0.015579 to 0.015989.
The Canadian dollar has faced considerable challenges, particularly influenced by the Bank of Canada’s recent rate cuts. In September and October, the Bank reduced its key interest rate to 2.25% amid concerns about a weakening labor market and economic uncertainty. Analysts suggest that further cuts may occur if economic risks persist. Moreover, volatility in oil prices, a significant factor for the CAD as Canada is a major oil exporter, has compounded these issues. Currently, oil prices are trading at $62.56, which is 4.4% below the three-month average, indicating a potential negative impact on the CAD.
Conversely, the Indian Rupee has been under substantial pressure, hitting record lows against the US dollar and facing challenges from both domestic and international factors. The Reserve Bank of India’s interventions to stabilize the rupee, including expanding its short dollar forward positions by $6 billion, reflect ongoing efforts to curb depreciation. The INR is also affected by reduced foreign direct investment and weak manufacturing exports, which are being closely monitored by economists.
Looking ahead, CAD's performance may hinge on forthcoming retail sales data that could provide necessary support if reported positively. Simultaneously, the INR's pathway appears challenged by a persistent differential in policy rates with the US and ongoing importer hedging, suggesting continued volatility in the INR to CAD exchange rate. As both currencies navigate these economic landscapes, market participants should remain vigilant to fluctuations in oil prices and central bank policies that are likely to influence future exchange rate movements.
