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What Canadians Should Know About the US Exchange Rate

In Business and Currency by Continental StaffLeave a Comment

In many ways (proximity, trades, etc), Canada and the United States are frequently paired together – and the currency exchange rate is no different! The US exchange rate is often on the minds and news of Canadians. Here’s a few things you may not have known about the US exchange rate!

History of the US dollar

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The US dollar is the official currency of the world’s largest economy – the United States. Many currencies around the globe are pegged to the US dollar or otherwise valued relative to it. The US dollar is also the world’s most used currency in international transactions and the dominant reserve currency worldwide. It became the official currency after the National Bank Act of 1863 and other policies that followed the Civil War.

Recent history of USD/CAD exchange rate

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Since Canadians are frequent travellers and shoppers to the US, the USD/CAD exchange rate is something commonly discussed and monitored by Canadians. While the exchange rate was pretty much on par back in 2013, it had been steadily climbing (at a “two steps forward, one step backwards” type of pace) until the exchange rate peaked in January 2016 at a close to 1.45 rate. Since then, the rate has dropped (again at an up and down pace) and is currently sitting around 1.30. While the higher rate has made it tougher for Canadians south of the border, there are still ways to take advantage of the situation.

Importance of USD in world finances

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The US dollar is the most-used world currency and makes up 64% of the central bank foreign exchange reserves. Far behind the USD is the euro which makes up almost 20%. In fact, the US dollar is involved in over 85% of all forex trading. The importance of the US dollar cannot be more stressed. On the world stage, the dollar is by far the biggest player in the game.

Tracking USD and CAD using Rate Watch on our website

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Use Continental’s FX Rate Watch and Currency Converter to track the USD/CAD exchange rate! It’s a web app that compares the exchange rate of over 160 currencies worldwide, so you can learn the historic exchange rates over the past 5 years and calculate how much of your money you need to convert into another currency for your next trip. Rate Watch features live exchange rates and a currency calculator – and it’s free to use! You can even set alerts so you know when a currency reaches your desired rate, and it’s time to buy.

Stay informed. Stay Current.