Skip to main content
Daily Updates

USD to CAD Update: Canadian dollar softer as other central banks begin to catch up to Bank of Canada

By May 26, 2021February 27th, 2024No Comments
The Canadian dollar is showing some softness for the first time in a couple of months.  After giving up 0.3% during the day yesterday, the currency is down 0.4% against USD despite the fact that USD is holding steady overall.  In fact, the Loonie is the weakest of the major currencies today.  Part of the reason is that CAD has had a very strong run in the last few months and by many accounts is overbought.  For example, the Interchange Financial Canadian Dollar Consensus Forecast shows the Loonie going 1.5 cents lower by the end of June.  The other reason we are seeing a move down in the Canadian currency today is that other central banks are starting to catch up to the Bank of Canada in terms of signaling rate hikes in 2022.  New Zealand’s central bank has just hinted at a possible interest rate hike by September 2022.  So some of the investment flows that were previously going into the Canadian dollar are now going into the NZ and the related Australian dollars.  Despite the move today, the Canadian dollar has gained around 5% since the beginning of the year and has outperformed all other G10 currencies in that period.  In the US, Federal Reserve officials have consistently reiterated that they would not change their ultra-supportive monetary policy stance any time soon and until that changes, the US dollar will likely remain mostly out of favour.


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.