Canadian Dollar Vs Us Dollar Exchange Rate History
The Canadian dollar and the US dollar are two of the most widely traded currencies in the world. They are the official currencies of Canada and the United States, respectively. The exchange rate between the two currencies has fluctuated over time, and understanding the history of this exchange rate is important for anyone who wants to trade or invest in either currency.
Early History
The Canadian dollar was first introduced in 1858, and initially had a fixed exchange rate with the US dollar. However, this exchange rate was abandoned in 1970, and since then the exchange rate has been determined by market forces.
During the early years of the exchange rate, the Canadian dollar was generally weaker than the US dollar. This was due in part to the fact that the Canadian economy was smaller and less developed than the US economy. As a result, Canadian goods and services were generally less expensive than their US counterparts, which led to a lower exchange rate.
The 1970s and 1980s
In the 1970s and 1980s, the Canadian dollar began to strengthen relative to the US dollar. This was due in part to the fact that the Canadian economy was growing faster than the US economy during this time period. Additionally, oil prices were high during this time period, and Canada is a major oil producer, which helped to boost the Canadian economy.
During this time period, the Canadian dollar reached a high of $1.04 US in 1976. However, by the end of the 1980s, the Canadian dollar had weakened to around $0.70 US.
The 1990s and 2000s
In the 1990s and 2000s, the Canadian dollar continued to fluctuate relative to the US dollar. During this time period, the Canadian dollar was generally weaker than the US dollar. This was due in part to the fact that the Canadian economy was still smaller than the US economy, and also because the US dollar is considered the world's reserve currency.
However, the Canadian dollar did experience periods of strength during this time period. For example, in 2007, the Canadian dollar reached parity with the US dollar for the first time since 1976. This was due in part to the fact that the Canadian economy was growing faster than the US economy, and also because commodity prices were high at this time.
Recent History
In recent years, the Canadian dollar has generally been weaker than the US dollar. This is due in part to the fact that the Canadian economy has been growing more slowly than the US economy. Additionally, oil prices have been low in recent years, which has hurt the Canadian economy, as it is a major oil producer.
However, the Canadian dollar has experienced periods of strength in recent years. For example, in 2011, the Canadian dollar reached a high of $1.05 US. This was due in part to the fact that the Canadian economy was recovering more quickly than the US economy from the global financial crisis.
Conclusion
The exchange rate between the Canadian dollar and the US dollar has fluctuated over time, and is influenced by a variety of factors, including economic growth, commodity prices, and market forces. Understanding the history of the exchange rate is important for anyone who wants to trade or invest in either currency.