Us Dollar To Canadian Dollar Exchange Rate Chart
The exchange rate between the US Dollar and the Canadian Dollar is an important factor for businesses and individuals who conduct international transactions between the two countries. The exchange rate fluctuates daily and is affected by a variety of factors including economic indicators, geopolitical events, and market sentiment.
Factors Affecting the Exchange Rate
One of the main factors affecting the exchange rate between the US Dollar and the Canadian Dollar is the interest rate differential between the two countries. If the interest rate in the US is higher than in Canada, investors will move their money to the US to earn a higher return. This increased demand for US dollars will drive up the exchange rate.
Another factor that affects the exchange rate is the balance of trade between the two countries. If Canada exports more to the US than it imports, there will be a greater demand for Canadian dollars. This increased demand will drive up the exchange rate.
Historical Exchange Rate Chart
Over the past decade, the exchange rate between the US Dollar and the Canadian Dollar has fluctuated between 0.94 and 1.47. In 2011, the exchange rate was at its highest point, with one US Dollar buying 1.07 Canadian Dollars. In 2020, the exchange rate was at its lowest point, with one US Dollar buying only 1.29 Canadian Dollars.
Current Exchange Rate
As of August 2021, the exchange rate between the US Dollar and the Canadian Dollar is approximately 1 US Dollar to 1.27 Canadian Dollars. This means that it takes approximately 1.27 Canadian Dollars to buy 1 US Dollar.
Impact on Business
The exchange rate between the US Dollar and the Canadian Dollar can have a significant impact on businesses that conduct international trade between the two countries. For example, if a Canadian company exports goods to the US and the exchange rate is favorable, they will receive more Canadian Dollars for each US Dollar received. This can increase their profit margin and make their products more competitive in the US market.
On the other hand, if a US company imports goods from Canada and the exchange rate is unfavorable, they will need to pay more US Dollars for each Canadian Dollar spent. This can increase their costs and reduce their profit margins.
Conclusion
The exchange rate between the US Dollar and the Canadian Dollar is an important factor for businesses and individuals who conduct international transactions between the two countries. It is affected by a variety of factors including economic indicators, geopolitical events, and market sentiment. Understanding the exchange rate and its impact on business can help companies make informed decisions and manage their risk when conducting international transactions.