Foreign bank interest and currency loss

[SR1968]

I have interest from a bank CD in India, and the interest is in Indian Rupees. While the interest is always a positive number and while I report it on Schedule B after converting it to USD, I am actually losing money on the deposit in USD as the INR loses value constantly. Should I report the interest as paid (converted to USD), or convert the maturity/deposit balance amount to USD and then report the loss or gain from the starting amount of the CD?

[JohnB5677]

The value of the Rupees is the value in USD on the day the interest was issued.  There is no other calculation necessary.