Added: 02/14/2006 |
Canadian dollar exchange in close connection with U.S. dollarsInflation in the value of the Canadian dollar has been fairly low since the 1990s, but had been severe for some decades before that.
About 85 per cent of Canada's external trade is with the United States, Canadians are mainly interested in the value of their currency against the United States dollar (USD). The Canadian dollar was more valuable than the USD for part of the 1970s, but has never regained that status. Since setting an all-time low of US$0.6179 on January 21, 2002, the dollar rallied through 2003, 2004 and 2005 reaching US$0.85 on November 26, 2004, US$0.86 on September 30, 2005, and US$0.87 on December 13 of the same year. The Canadian dollar hit a 14-year high of US$0.8780 on January 31, 2006.
On world markets, the Canadian dollar tended historically to move in the same direction as the U.S. dollar, but less dramatically. A consequence is that at times an apparently rising Canadian dollar is often falling against most of the world's currencies, and vice-versa. However, during the relatively sharp rise of the Canadian dollar since 2002, it has "parted way" with the U.S. dollar and has gained value against it, while also rising against other major international currencies.
Although there was a great deal of domestic concern when the Canadian dollar was trading much lower than the U.S. dollar, there is also concern among exporters when the dollar appreciates quickly. The rapid rise in the value of the Canadian dollar increases the price of Canadian exports to the United States, which make up a large part of the economy. On the other hand, Canadian industry enjoys advantages from a rising dollar, primarily in that it is cheaper to purchase foreign material and businesses.
Bank of Canada, Canadian dollar exchange rates are nominal quotations - not buying or selling rates - and are intended for statistical or analytical purposes. Canadian dollar exchange rates available from financial institutions will differ. Rates are expressed in Canadian dollars, converted from U.S. dollars.
The noon Canadian dollar exchange rate against the U.S. dollar is calculated to reflect the trades that take place between 11:59 a.m. and 12:01 p.m. Noon Canadian dollar exchange rates are derived from the US$/Can$ exchange rate and from indicative wholesale market quotes for a broad array of other currencies. Although obtained from sources believed to be reliable, the data are for informational purposes only, and the Bank of Canada does not guarantee their accuracy or completeness.
The noon Canadian dollar exchange rate is updated by about 12:45 p.m. ET at month-end and 12:30 p.m. ET on other business days. The closing rates are based on official parities or market rates and are updated at about 4:30 p.m. ET on the same business day.
It's quite often difficult to find reliable and free exchange rate data on the Internet. The only comprehensive service that I know of is the PACIFIC Exchange Rate Service at the University of British Columbia which is an excellent resource on exchange rates.
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