The USD to CAD exchange rate is down more than 1.5% so far this month, as of the 3rd of April. For over the past 30 days is also down. Not necessarily a bad thing for Canadians as inflation begins to finally slow down, and the era of extremely low interest rates has come to a close. Some major news includes Saudi Arabia and OPEC’s surprise decision to introduce yet another colossal cut to oil production, which has thus far brought back up the price of oil. The vast majority of Canada’s hydrocarbon output is exported directly to the United States.
While the Loonie is not an exact petro currency, it is still heavily link the oil prices. In particular the USD to CAD exchange rate does usually flow with the value of Canada’s exports and trade balance to the United States.
As long as oil prices remain elevated, or even continue to climb it will likely have a positive effect on the value of CAD, and the USD to CAD rate will continue to decrease at least modestly.
