Last Time Canadian Dollar Was Higher Than American
The Canadian dollar is the official currency of Canada and is often referred to as the "loonie" due to the bird depicted on the coin. On the other hand, the American dollar, also known as the United States dollar, is the official currency of the United States. Both currencies are widely used and are considered to be among the most stable currencies in the world.
History of the Canadian Dollar and American Dollar
The Canadian dollar was first introduced in 1858, replacing the Canadian pound. Over the years, the value of the Canadian dollar has fluctuated, with periods of high and low exchange rates against other currencies, including the American dollar.
The American dollar, on the other hand, has a longer history, dating back to 1792 when it was first introduced as the official currency of the United States. Since then, the value of the American dollar has also fluctuated, with periods of high and low exchange rates against other currencies, including the Canadian dollar.
When Was the Last Time the Canadian Dollar Was Higher Than the American Dollar?
The last time the Canadian dollar was higher than the American dollar was in 2007. At that time, the Canadian dollar reached a value of $1.10 USD, which was the highest value it had reached in over 30 years. This was largely due to the strength of the Canadian economy, which was buoyed by high oil prices and a strong housing market.
However, the high value of the Canadian dollar was short-lived, and by 2008, the global financial crisis had hit, causing the value of the Canadian dollar to drop. Since then, the exchange rate between the Canadian and American dollar has fluctuated, with periods of higher and lower exchange rates.
Factors Affecting the Value of the Canadian Dollar and American Dollar
There are several factors that can affect the value of both the Canadian dollar and the American dollar. These include:
- Economic performance: The performance of the Canadian and American economies can affect the value of their respective currencies. A strong economy can lead to a stronger currency, while a weak economy can lead to a weaker currency.
- Interest rates: The interest rates set by the central banks of Canada and the United States can also affect the value of their currencies. Higher interest rates can lead to a stronger currency, while lower interest rates can lead to a weaker currency.
- Inflation: The rate of inflation can also affect the value of a currency. Higher inflation rates can lead to a weaker currency, while lower inflation rates can lead to a stronger currency.
- Political stability: Political instability can also affect the value of a currency. A stable political environment can lead to a stronger currency, while political instability can lead to a weaker currency.
Current Exchange Rate between the Canadian Dollar and American Dollar
As of August 2021, the exchange rate between the Canadian dollar and the American dollar is approximately 1.25 CAD to 1 USD. This means that one Canadian dollar is worth approximately 0.80 USD.
The exchange rate between the two currencies can fluctuate on a daily basis, depending on a variety of factors including economic performance, interest rates, and political stability.
Conclusion
The last time the Canadian dollar was higher than the American dollar was in 2007, when it reached a value of $1.10 USD. Since then, the exchange rate between the two currencies has fluctuated, with periods of higher and lower exchange rates.
The value of both the Canadian dollar and the American dollar can be affected by a variety of factors, including economic performance, interest rates, inflation, and political stability. As of August 2021, the exchange rate between the two currencies is approximately 1.25 CAD to 1 USD.