A weak economy may result in a weaker currency. This increased demand for USD will cause its value to rise against CAD, resulting in a higher USD/CAD exchange rate. If the United States has a strong economy relative to Canada, then investors will tend to put more money into USD-denominated assets like stocks and bonds. State of the EconomyĪnother factor that affects the USD/CAD exchange rate is the overall relative strength of each economy. This results in a stronger Canadian Dollar and a higher USD/CAD exchange rate. When oil prices go up, the Canadian dollar usually strengthens because Canada's export earnings increase. Oil PricesĬanada is one of the world's largest producers and exporters of oil, so changes in oil prices have a big impact on the Canadian economy. Conversely, if interest rates in the United States are higher than interest rates in Canada, then it becomes more attractive for Canadians to invest their money in the U.S., leading to an increase in demand for USD. This leads to an increase in demand for CAD as investors purchase CAD to buy CAD-denominated investments or savings. When interest rates in Canada are higher than interest rates in the United States, then it becomes more attractive for Americans to invest their money in Canada. Comparatively higher interest rates attract foreign investors who want to get a higher return on their investment. Federal Reserve policies have an impact on the USD/CAD exchange rate. However, what it also affects are investments.īank of Canada and U.S. Interest rates are set by central banks and they influence the cost of borrowing money. One of the most important factors that affects the USD/CAD exchange rate is interest rates. Below, we'll look at these key factors that have a significant impact on the USD/CAD exchange rate. Note: A snapshot of published USD/CAD exchange rates on January 11, 2024.įactors that affect the USD/CAD rate include interest rates, oil prices, and the state of the economy. USD/CAD Spreads at Canada’s Major Banks Bank Rates may differ for commercial banking clients, for larger volume purchases, and for non-cash transactions. The table below shows a snapshot of current USD/CAD exchange rates at Canada’s major banks that are available for retail customers to exchange at, either online through online banking or in a branch.

This can have a major impact on the amount of money you have to spend when exchanging currencies, and it’s something that you need to be aware of before making any decisions. This means that if you are buying USD, you’ll be buying USD at a much higher rate than what the current market exchange rate is, also known as the “spot” rate. The spreads at major banks can be significant. The Client Sells rate is what you will receive in CAD in exchange for your USD. The Client Buys rate is what you will pay in CAD in order to receive USD. For example, TD shows a 'Client Buys' rate and a 'Client Sales' rate. You will usually see this in the form of two different exchange rates at a bank. The term “spread” refers to the difference in the bid and ask price of a currency pair, where bid is the price that you sell at and ask is the price that you buy at. When you exchange USD to CAD, or CAD to USD, you’ll be paying a spread. If you’re looking to exchange other foreign currencies, you can estimate how much foreign currency your funds are equivalent to by using a currency converter. CAD/USD and USD/CAD are inverses of each other. This can be done by selling at the USD/CAD rate or buying at the CAD/USD rate. Dollars into Canadian Dollars, then you'll be buying CAD and selling USD. To use this calculator, you will need to know which direction you want to exchange your funds. These current rates used by this currency tool are the 'spot rate' on the market, which might not necessarily be the rate that you will be able to convert at as a retail customer. This currency converter calculates how much USD or CAD you would get from converting by using live USD/CAD rates. If the USD/CAD exchange rate goes up, then it means that the value of USD has gone up relative to CAD. USD/CAD is a currency pair that shows how many Canadian Dollars (CAD) are needed to buy one U.S. This Page's Content Was Last Updated: January 10, 2024.

Exchange rate usd to cad