USD to Canadian Exchange History

The exchange rate between the US Dollar (USD) and the Canadian Dollar (CAD) has seen significant fluctuations over the years, reflecting changes in economic conditions, monetary policies, and market sentiments. Historically, the USD/CAD exchange rate has been influenced by factors such as oil prices, interest rate differentials, and economic growth in both countries.

In the early 2000s, the CAD was weaker against the USD, with rates often exceeding 1.50 CAD per USD. This period was marked by a strong US economy and relatively weaker Canadian economic performance. However, starting in 2002, the CAD began to appreciate, reaching parity with the USD for the first time in over 30 years in 2007. This appreciation was largely driven by rising oil prices, as Canada is a significant oil exporter, and a robust Canadian economy.

From 2007 to 2008, the exchange rate saw fluctuations due to the global financial crisis. The USD strengthened as investors sought safety, and the CAD weakened. During this crisis, the rate dropped to around 1.20 CAD per USD.

Post-2008, as the global economy started recovering, the CAD appreciated again, reflecting a rebound in commodity prices and a strengthening Canadian economy. By 2011, the CAD had briefly surpassed the USD, reaching rates of around 0.98 CAD per USD. However, this period of strength was followed by a decline as oil prices fell sharply in 2014. The CAD weakened significantly, with rates climbing to around 1.40 CAD per USD by early 2016.

In recent years, the exchange rate has continued to fluctuate due to various factors, including changing oil prices, economic policies, and geopolitical events. In 2020, the rate saw considerable volatility due to the COVID-19 pandemic, with the CAD weakening initially but recovering as the global economy began to stabilize.

As of 2024, the USD/CAD exchange rate is influenced by ongoing economic conditions and geopolitical factors. The rate has generally ranged between 1.25 and 1.35 CAD per USD, reflecting a balance between the strength of the US economy and the performance of Canada's economy and oil sector.

Historical Data Summary:

Year	Average Exchange Rate (USD/CAD)
2000-2002	1.50
2007-2008	1.20
2011	0.98
2014-2016	1.40
2020	Volatile
2024	1.25 - 1.35

Understanding the historical trends in the USD/CAD exchange rate is essential for businesses and investors operating in or with these two countries. Exchange rate fluctuations can impact trade, investment returns, and economic stability.