Exchange Rate Us Dollar To Canadian Dollar History
The exchange rate between the US dollar (USD) and Canadian dollar (CAD) has been fluctuating for decades. The USD is the world's primary reserve currency, while the CAD is the fifth most held reserve currency worldwide. Let's take a look at the history of the exchange rate between these two currencies.
Early History
The first Canadian dollar was introduced in 1858, and it was equal to the US dollar. However, due to the fluctuations in gold prices during the late 1800s, the value of the Canadian dollar dropped significantly. By 1901, the Canadian dollar was worth only 76 US cents.
Post World War II
After World War II, the Canadian dollar was pegged to the US dollar at a rate of USD 1.10 = CAD 1. This peg continued until 1950 when the Canadian government allowed the Canadian dollar to float freely against the US dollar.
1970s and 1980s
During the 1970s and 1980s, the CAD experienced significant fluctuations against the USD due to a number of factors, including oil price shocks, high inflation rates, and changes in monetary policy. By the end of the 1980s, the CAD was worth approximately 80 US cents.
The 1990s
The 1990s saw the CAD reach a high of 89 US cents in 1991 before falling to a low of 63 US cents in 1998. The fluctuations were due to a number of factors, including changes in global economic conditions and political instability in Canada.
The 2000s
The 2000s saw the CAD strengthen against the USD, reaching parity in 2007 for the first time since 1976. This was due in part to Canada's strong economic performance and the weakening of the USD due to the global financial crisis.
Recent History
Since 2010, the CAD has fluctuated between 70 and 80 US cents. Factors that have influenced the exchange rate include changes in global economic conditions, shifts in monetary policy, and political events such as the election of Donald Trump in the United States in 2016.
Conclusion
The exchange rate between the USD and CAD has had a long and varied history. While it has fluctuated significantly over the years, it has remained relatively stable in recent times. Understanding the factors that influence exchange rates can help individuals and businesses make informed decisions when it comes to international transactions.