Canadian Dollar Moves Lower Against US Dollar
The Bank of Canada's daily exchange-rate data show the USD-CAD rate at 1.4021 on September 21. The corresponding CAD-USD rate was 0.7132.
The latest figure also represents a weaker Canadian dollar compared with the rate recorded one month earlier. On August 21, the USD-CAD rate was 1.3760.
Because the Bank of Canada's exchange rates are indicative daily rates, they should not be treated as intraday market quotes. Actual currency-market prices can move throughout the trading day.
Bank of Canada's Policy Rate Remains at 2.25%
The Bank of Canada's target for the overnight rate remained at 2.25% in the latest available data.
The Canadian Overnight Repo Rate Average, known as CORRA, was 2.29%. CORRA is an important reference rate for Canada's overnight funding market.
The policy rate and short-term market rates remain important indicators for businesses, borrowers and investors because changes in interest rates can affect borrowing costs and financial conditions.
USD-CAD Rate Has Increased Since August
The Bank of Canada's exchange-rate data show a clear change in the USD-CAD rate over the period from August 21 to September 21.
On August 21, the rate was 1.3760 Canadian dollars per US dollar. By September 21, it had reached 1.4021.
That means the Canadian dollar was weaker against the US dollar in the latest daily data than it was a month earlier.
What the Exchange Rate Means
The USD-CAD exchange rate represents the number of Canadian dollars required to purchase one US dollar.
When the USD-CAD rate increases, it generally means the Canadian dollar has weakened against the US dollar. Conversely, a lower USD-CAD rate generally indicates a stronger Canadian dollar against the US currency.
Currency movements can affect businesses involved in international trade, importers, exporters and consumers purchasing goods or services priced in US dollars.
Bank Data Provide an Official Reference
The Bank of Canada publishes daily exchange-rate information as an official reference for currency values. These rates are based on the Bank's methodology and are intended to provide an indicative measure rather than a live trading price.
The latest data therefore provide an official snapshot of the Canadian dollar's value against the US dollar while also showing how the exchange rate has changed over the previous month.
What to Watch Next
Future movements in the Canadian dollar will depend on developments affecting Canada's economy, interest rates, inflation, trade and financial markets.
The Bank of Canada's policy rate will remain an important part of the monetary-policy environment, while official exchange-rate data will continue to provide a reference for tracking the Canadian dollar against major currencies.