Description
The USD/CAD exchange rate reflects the amount of Canadian dollars (CAD) required for one unit of US dollars (USD). This exchange rate is influenced by various factors, including the monetary policies of the US Federal Reserve (Fed) and the Bank of Canada (BoC), global oil prices (since Canada is a major oil exporter), trade relations, and the overall economic performance of both countries.
A lower USD/CAD exchange rate indicates a stronger Canadian dollar, which can reduce import costs but may hurt Canadian export competitiveness. Conversely, a higher USD/CAD exchange rate reflects a weaker Canadian dollar, benefiting exports but potentially increasing import costs.