Exchange Rate For Canadian Dollar Vs Us Dollar
Introduction
The Canadian Dollar (CAD) is the official currency of Canada and is abbreviated as C$ or CAD. The United States Dollar (USD) is the official currency of the United States and is abbreviated as US$ or USD. The exchange rate between the Canadian dollar and the US dollar is an important factor in international trade and finance.
Factors Affecting the Exchange Rate
The exchange rate between the Canadian dollar and the US dollar is affected by several factors including:
- Interest rates set by the central banks of Canada and the US
- Inflation rates in both countries
- Economic growth rates in both countries
- Political stability in both countries
- International trade and investment flows
Changes in any of these factors can cause the exchange rate to fluctuate.
Historical Exchange Rate
The exchange rate between the Canadian dollar and the US dollar has varied over time. In the mid-1980s, the Canadian dollar was worth more than the US dollar. However, from the late 1990s to the mid-2000s, the US dollar was worth more than the Canadian dollar. Since 2007, the Canadian dollar has generally been worth more than the US dollar.
Current Exchange Rate
As of September 2021, the exchange rate between the Canadian dollar and the US dollar is approximately 0.80. This means that one US dollar is worth approximately 1.25 Canadian dollars. The exchange rate can vary on a daily basis due to the factors mentioned above.
Impact on Trade
The exchange rate between the Canadian dollar and the US dollar has a significant impact on trade between the two countries. When the Canadian dollar is strong, Canadian exports to the US become more expensive, which can reduce demand for Canadian goods. On the other hand, when the US dollar is strong, US exports to Canada become more expensive, which can reduce demand for US goods.
Conclusion
The exchange rate between the Canadian dollar and the US dollar is an important factor in international trade and finance. It is affected by several factors including interest rates, inflation rates, economic growth rates, political stability, and international trade and investment flows. The exchange rate has varied over time and can fluctuate on a daily basis. It has a significant impact on trade between Canada and the US.