Understanding the Exchange Rate: Canadian Dollar to US Dollar

The USD/CAD currency pair shows how many Canadian dollars one gets for every US dollar.  For instance, a USD/CAD rate of 1.25 means 1 US dollar equals 1.25 Canadian dollars.  

Things going on in both Canada and the US economy and government affect the USD/CAD exchange rate. We will now look at some things that affect every country.

The US dollar to Canadian dollar exchange rate over the last ten years, from 2008 to 2018, is shown below.  The FX rate has been between 0.94 and 1.46 during that time, as you can see.

These currencies have been close in value for a decade. Interestingly, they have alternated between stronger currencies.

Between late 2008 and mid-2011, the Canadian dollar strengthened against the US dollar when the 2008 financial crisis rocked the US.

Since Canada and the US are neighbors, the exchange rate affects business, tourism, and lifestyles.The US dollar strengthens, causing some production and labor outsourcing to Canada to cut costs. 

See Also

Tips for Saving Money on Currency Conversion: CAD to USD