Canadian Dollar Exchange Rate
Bank of Canada data shows the U.S. dollar was worth C$1.3863 on September 2, 2026. On the same basis, one Canadian dollar was worth approximately US$0.7213.
The Bank publishes daily exchange rates as indicative rates derived from aggregated price quotes from financial institutions. These rates provide an official reference point for tracking movements in the Canadian dollar against major currencies.
The Canadian dollar's value can be influenced by several factors, including interest-rate differences between Canada and the United States, commodity prices, economic growth and developments affecting Canada's international trade.
Bank of Canada Keeps Interest Rate at 2.25%
The Bank of Canada maintained its overnight target rate at 2.25% at its September 2 policy decision. The Bank Rate remained at 2.50%, while the deposit rate stayed at 2.20%.
Keeping the policy rate unchanged provides continuity for households, businesses and financial markets as policymakers assess economic conditions.
Interest-rate expectations can also influence currency markets. Higher Canadian interest rates relative to other economies can increase the attractiveness of Canadian-dollar assets, while a narrower interest-rate gap can reduce that support.
Trade Relations Remain a Key Currency Factor
Canada's economic relationship with the United States remains particularly important for the Canadian dollar because the two countries have extensive trade and investment links.
The federal government has announced counter-tariffs covering C$27.6 billion of imports from the United States. The measures include different tariff rates depending on the affected products and are scheduled to take effect on September 8, 2026.
Trade restrictions can affect currency expectations because they can influence export activity, business investment, production costs and economic growth. Continued uncertainty can therefore remain an important consideration for investors assessing the Canadian dollar.
Why Interest Rates Matter for the Loonie
Currency markets closely watch central-bank decisions because interest rates influence the returns available on assets denominated in a particular currency.
For Canada, the Bank of Canada's policy rate is therefore one of the factors investors consider when assessing the Canadian dollar. Changes in the expected path of Canadian interest rates can affect demand for the currency even before the Bank actually changes its policy rate.
The relationship is not one-directional, however. The Canadian dollar is also influenced by economic growth, inflation, commodity markets, trade conditions and developments in the United States.
Official Data vs. Analyst Forecasts
Recent market commentary has included forecasts for where the Canadian dollar could trade over the coming months and year. Those forecasts represent analyst expectations rather than official projections from the Bank of Canada.
The Bank of Canada does not publish the Reuters analyst poll figures cited in market reports as an official currency forecast. Therefore, those estimates should not be presented as Bank of Canada projections.
Instead, official data can be used to establish the Canadian dollar's current exchange-rate level and the monetary and trade conditions surrounding it.
What to Watch Next
Investors and businesses will continue to monitor several developments that could influence the Canadian dollar.
The first is Canada's monetary-policy outlook. Future Bank of Canada decisions will depend on incoming economic and inflation data.
The second is the direction of Canada-U.S. trade relations. Changes in tariffs, negotiations or other trade measures could affect expectations for Canadian exports and economic growth.
The third is the relative performance of the Canadian and U.S. economies. Because the United States is Canada's largest trading partner, developments in the U.S. economy can have significant implications for Canadian financial markets.
Canadian Dollar Outlook
The Canadian dollar's outlook remains closely connected to the interaction between monetary policy and trade conditions.
Official Bank of Canada data places the currency at C$1.3863 per U.S. dollar as of September 2, while the central bank has maintained its policy rate at 2.25%.
At the same time, Canada's counter-tariff measures demonstrate that trade policy remains an important factor for the economy. Any reduction in trade uncertainty could change expectations around investment, exports and economic growth, while prolonged tensions could continue to create challenges.
For now, the most reliable way to assess the Canadian dollar is to track official exchange-rate data alongside Bank of Canada decisions and developments in Canada's trade policy.