Find the best AUD/INR exchange rate and save on fees when you transfer money from Australia to India.
If you need to send money back home to India from Australia, finding the best AUD/INR exchange rate is crucial to the success of your transaction. Not only will you need to time your transaction just right to benefit from a favourable exchange rate, but it’s also important to compare money transfer providers to find the highest rates available and benefit from low fees.
But when is the right time to transfer money from Australia to India and how can you lock in the best exchange rate? Read on to find out.
Compare AUD/INR exchange rates
AUD/INR: How to get value for money
There are two crucial factors to consider when sending money to India:
- Choosing the right time to transfer funds so you can take advantage of a high AUD/INR exchange rate
- Choosing the money transfer provider that offers the best exchange rates and lowest fees
First, let’s take a look at the history of the AUD/INR exchange rate and how you can choose the best times to transfer money to India from Australia.
Australian dollar to Indian rupee exchange rate history
Upon its introduction in 1966, the Australian dollar (AUD) was a fixed currency, pegged directly to the US dollar (USD). It switched to a managed floating system in August 1971, then was briefly pegged to the British pound sterling (GBP). It underwent a revaluation at the end of 1971 and was pegged to the USD again. In December 1983, the AUD became a free-floating currency.
The Indian rupee (INR) has a history that dates back as far as the 6th century BC. Just like the AUD, today the INR also follows the floating exchange rate system.
Historically, the AUD has been a strong performer against the INR. Throughout the second half of the 1990s, the AUD hovered between the 25 INR and 28 INR marks. Both currencies increased in value during this time relative to other global currencies, but their value relative to one another remained stable.
The next major move in the AUD/INR exchange rate began early in 2009, when Australia escaped the worst of the global financial crisis that threw many worldwide economies into turmoil. From February 2009 to mid-2013, the AUD steadily increased in value relative to the INR, climbing from just over 30 INR to a peak above 60 INR.
Since that time, positive signs of growth in India’s economy, combined with decelerating growth in Australia, have seen the AUD fall in value to around 50 INR.
When can I find the best AUD/INR exchange rate?
The value of any country’s currency is fluctuating all the time. Take a look at a 10-year graph of the AUD/INR exchange rate and you will see that it can rise and fall quite substantially in even a short period of time.
With this in mind, it’s important that you choose the right time to transfer money from Australia to India so that you get the best possible deal. For example, let’s say you wanted to exchange your Aussie dollars for rupees in January 2016, when 1 AUD was worth 46.51 INR, as opposed to April 2016 when 1 AUD would get you 51.59 INR. As the table below shows, simply waiting three months to send your transfer and take advantage of a better exchange rate can make a huge difference to your bottom line.
|January 2016||April 2016|
|Transfer amount (in AUD)||$1,000||$1,000|
|Exchange rate||1 AUD = 46.51 INR||1 AUD = 51.59 INR|
|Amount received (in INR)||46,510||51,590|
By waiting a few extra months to send Australian dollars back home to your loved ones in India, you can ensure that they receive an extra 5,080 INR – and you don’t have to pay a cent more.
How do I know when to transfer AUD to INR?
You will obviously want to wait until the AUD is valued as high as possible relative to the INR before you send a transfer, but how can you know what lies ahead for the AUD/INR exchange rate? There is a long list of factors that can influence the value of one currency versus another, including interest rates, imports and exports, inflation, local political climates and the performance of a country’s economy as a whole.
So, as you might expect, predicting the course the AUD/INR will take is far from easy. It’s definitely worth your while to keep an eye on media reports and financial news to get an idea of what the experts are predicting will happen to the exchange rate in the coming weeks and months. Studying the past history of the AUD/INR exchange rate will also help you form a clearer picture of when the AUD may be overvalued relative to the INR, or vice versa.
When is the best time to transfer AUD to INR? Any point in time when the AUD is strong relative to the INR – in other words, when the Australian dollars in your bank account will purchase you as many Indian rupees as possible.
As you can see in the graph below, the best times to transfer money from Australia to India in the period from 26 October 2015 to 25 October 2016 were:
- In April 2016, when 1 AUD = 51.63 INR
- In August 2016, when 1 AUD = 51.49 INR
- In October 2016, when 1 AUD = 51.43 INR
*Screenshot taken from xe.com, 26/10/2016
Choosing the right transfer provider
Choosing the right time to send an international money transfer to India is only half the battle; the other half is comparing money transfer providers to ensure you find one that offers secure transactions and value for money.
There are three main options when sending an international money transfer from Australia to India:
- Banks. You can send money to an Indian bank account directly from your Australian bank account.
- Cash pickup transfer providers. Companies like Western Union and MoneyGram offer fast cash transfers, allowing your recipient to collect the funds within minutes from hundreds of thousands of agent locations around the world.
- Online transfer providers. These providers, such as OFX and TorFX, offer fast online transfers to India and countries all around the world.
Even if you transfer at a time when the AUD/INR exchange rate is at its highest, you can still be short-changed if you settle for a low rate. The exchange rates on offer can vary quite substantially depending on the provider you choose – for example, banks offer far lower exchange rates than specialist online transfer companies, which could cost you hundreds of dollars or more depending on the size of your transfer.
Specialist transfer providers also tend to charge lower transfer fees than the major banks for international transactions. They may even waive their fees altogether if you transfer a large amount, so it’s definitely worth shopping around for a good transfer deal.
Prakash has been living and working in Australia for the past six months. He’s saved a bank balance of $2,000 that he wants to send to his parents in India to help them meet their financial obligations.
Prakash’s funds are held in an account with a “Big Four” bank and he knows he can send an international money transfer direct from his account to his parents’ account in India. However, he decides to compare the cost of sending the money via his bank with the cost of sending the transfer through a cash transfer company and an online transfer provider. The results of the comparison are shown in the table below:
|Bank||Cash transfer company||Online transfer company|
|Exchange rate||1 AUD = 49.433981 INR||1 AUD = 50.365637 INR||1 AUD = 50.56 INR|
|Transfer method||Bank transfer||Cash pickup||Online transfer|
|Processing time||2-5 days||10 minutes||2 days|
|Amount sent (in AUD)||$2,000||$2,000||$2,000|
|Amount received (in INR)||98,867.96||100,731.28||101,120|
As you can see, even though the difference in exchange rates seems relatively minor, the online transfer provider allows you to send 2,252.04 INR more than the bank and 388.72 INR more than the cash pickup provider. It also allows you to save $19 and $20 in fees compared to the bank and cash transfer company respectively.
This shows the importance of comparing money transfer providers before you transfer funds from Australia to India. You can find more info on how to do so in our guide to international money transfers.
Other tips to help you get the best AUD/INR exchange rate
Keep the following tips in mind to get better value for money from your Australia to India money transfer:
Check out the current rate
Use a reliable currency conversion resource such as XE or Oanda to find out what the current interbank AUD/INR rate is. You can then compare this to the exchange rate on offer from different transfer providers.
Ask for a quote
In order to find out exactly what exchange rates are available, you will usually need to ask a money transfer provider for a quote. Getting a quote allows you to find out the rate you will actually receive – not just the current interbank rate commonly quoted on provider websites – and then compare between companies.
Consider forward contracts
Some companies offer a flexible money transfer tool as a forward contract. This allows you to lock in an exchange rate now for a transaction that will take place months or even years into the future, providing protection against falling exchange rates.
Consider limit orders
Limit orders allow you to choose the exchange rate you want, and then the provider will automatically execute your transfer only when your desired rate becomes available. This allows you to get the rate you want and also saves time.
Send one big transfer rather than several smaller transfers
Some companies may offer higher exchange rates and lower fees when you send a large transfer with them, so you may be better off sending one big transfer rather than several smaller amounts.