The Canadian Dollar (CAD) in the Current Market

The Canadian dollar (CAD) is the official currency of Canada and is commonly known as the “Loonie” due to the loon bird depicted on the one-dollar coin. It is one of the most traded currencies in the global market and is used as a reserve currency by several central banks.

Current Exchange Rate

As of February 2, 2025, the exchange rate of the Canadian dollar against the US dollar is as follows:

• 1 CAD = 0.6792 USD
• 1 USD = 1.4715 CAD

(wise.com)

Factors Affecting the Canadian Dollar

Several key factors influence the value of the Canadian dollar, including:

1. Commodity Prices – Since the Canadian economy relies heavily on exports of commodities such as oil and metals, fluctuations in commodity prices directly impact the CAD.

2. Monetary Policies – Decisions by the Bank of Canada (BoC) regarding interest rates and quantitative easing play a significant role in determining the currency’s strength.

3. Economic Data – Reports on GDP growth, unemployment rates, and inflation indicators also affect the value of the Canadian dollar.

Recent Developments

In recent months, the Canadian dollar has experienced noticeable fluctuations against the US dollar. For instance, on September 25, 2024, the exchange rate stood at 1 CAD = 0.7451 USD, whereas by February 2, 2025, it had dropped to 0.6792 USD. (wise.com)

These fluctuations reflect the impact of the above-mentioned factors, along with global developments such as changes in oil prices and the monetary policies of major central banks.

Tips for Travelers and Investors

• For Travelers: It is advisable to check exchange rates before traveling and use currency conversion tools to get the best value.
• For Investors: Keeping an eye on the factors affecting the CAD can help make informed decisions when investing in foreign exchange markets.