fbpx Skip to main content
Daily Updates

Canadian Dollar’s Upward Trajectory Set to Continue in 2024

By December 20, 2023No Comments

The Canadian dollar is holding steady at around a four-and-a-half-month high against the US dollar on Wednesday morning. The Canadian dollar has gained over 5 cents since November and 2.5 cents in the last week against the US dollar.

The primary driver of the Canadian dollar’s strength is the projected interest rate differentials that investors are anticipating based on messaging from the Bank of Canada and the Federal Reserve. Last week, the Fed made a clear and somewhat unexpected ‘pivot’ to a more dovish (favoring lower interest rates) stance, allowing markets to price in a more aggressive rate cut path in 2024. In Canada, however, the economic data and the messaging from the Bank of Canada (BoC) present a more conflicted picture. The latest Canadian inflation numbers released on Tuesday surprised on the upside and remained steady at 3.1%. Analysts had anticipated an inflation figure of 2.9%. Meanwhile, Bank of Canada Governor Tiff Macklem said in an interview on Monday that he expects rates to be cut next year.

Analysts are suggesting that the comments by BoC Governor Macklem are more about aligning with the Fed and less about economic fundamentals. Overall, the Canadian dollar is likely to continue benefiting from a lower interest rate environment compared to that of the US dollar and is expected to be in the low 1.30’s by the end of the 1st quarter in 2024.

The Canadian dollar is currently trading at 1.3325 CAD against the US Dollar.



Are you looking for a better exchange rate?

Get the best exchange rate

Receive daily updates on Canadian dollar

Account to Account Service at Interchange Currency Exchange

Account to Account

If you have US dollar bank account in Canada and are looking to convert in your bank account at better rates than offered by your bank, then this service is for you.

Cash transactions at Interchange Currency Exchange

Cash

We have exchange rates that are much better than the banks and we charge no fees.

Money Transfer services at Interchange Financial

Money Transfer

If you are transferring money internationally or receiving money from overseas, we can help you save money as well because of our better exchange rates.