Inflation, debt and government spending started weighing down the dollar. Bank of Montreal’s chief economist Douglas Porter says Canadians were already feeling the pinch of higher prices for just about everything and increased borrowing costs. Now, he says, the cost of just about anything imported from the U.S. is rising as well. Surge pumps oil primarily in central Alberta and southern Saskatchewan. The company produces about 24,000 barrels of oil per day. «I wouldn’t be too shocked if we were to get below 70 cents US and even perhaps all the way down to 68 cents at some point,» said Karl Schamotta, the chief market strategist of the financial payments company Corpay.
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What was the highest USD to CAD exchange rate in the last
Two videos sent to immigration lawyer Max Chaudhary appear to be him directly addressing an individual on a first-name basis and even naming his fiance. The problem is that what he’s watching is actually a deepfake video created by artificial intelligence (AI). Need to know when a currency hits a specific rate? The Xe Rate Alerts will let you know when the rate you need is triggered on your selected currency pairs. That’s just one small glimpse into the impact a low dollar can have on the way many Canadians see the economy and the politicians they blame for its woes.
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But when the price of oil fell in 2015, the loonie plummeted as well. «It almost automatically leads to higher gasoline prices. It can filter right into food prices because much of the food that we buy now is imported or has to compete internationally,» said Porter. And currency fluctuations are crucial for the company’s bottom line. «The market momentum is clearly against the Canadian dollar right now. And, you know, that market momentum does tend to build ahead of the inauguration date when new presidents take their office,» said Schamotta. The American dollar gained ground on the currency of almost every industrialized country in the world as he has promised tax cuts, deregulation and sweeping tariffs on all U.S. imports. The Canadian dollar has been on a long, slow decline since the summer of 2021.
But the decline has picked up steam this month as the U.S. dollar soared on news that Donald Trump had won re-election. Set an alert now, and we’ll tell you when it gets better. And with our daily summaries, you’ll never miss out on the latest news.
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And he puts the blame for that on policy-makers in Ottawa who, he says, spent too much, printed too much money and weakened the Canadian economy in the process. «People tend to see the currency value as a sort of national virility symbol,» he says. So they’ll get excited when the dollar is high and disappointed when the dollar is low. Schamotta says over the past couple of years the U.S. economy has expanded while economic growth has flatlined in Canada, giving currency traders a clear contrast. «We are one of the most interest rate sensitive economies in the world. ADSS forex broker We’ve been hit hard by the rise in inflation and interest rates in particular,» said Porter. As the price of oil remained stubbornly high between 2010 and 2014, Canada’s currency traded between $1.05 and $0.95 US.
- It’s known locally as a buck or a loonie, with the two-dollar coin known as a toonie.
- Earl Davis, head of fixed income and money markets at BMO Global Asset Management, breaks down the slide.
- Inflation, debt and government spending started weighing down the dollar.
- Additionally, it’s advisable to convert US Dollars to Canadian Dollars early in the week if you need CAD urgently.
- «It’s very likely that even immigration lawyers and consultants don’t have the right information, because changes are happening very quickly.»
- Whether you need to make cross-border payments or FX risk management solutions, we’ve got you covered.
These currency charts use live mid-market rates, are easy to use, and are very reliable. «We sell our oil in U.S. dollars, and get U.S. dollars for them, and then convert them back. So today, Surge is getting about $97-$98 Canadian per barrel for our oil, which is a very attractive price,» said Colborne. A weakening dollar has sweeping effects on the Canadian economy.
The U.S. dollar is the currency most used in international transactions. Several countries use the U.S. dollar as their official currency, and many others allow it to be used in a de facto capacity. Toronto radio and podcast host Jax Irwin has recently gone viral for videos of her cute — and at times confusing — phone conversations. The holidays may be a time for family, joy and togetherness, but they can also be hard on the wallet. «Double-check and triple-check the information, talk to a migrant’s organization, get as much correct information as you can,» LexaTrade Broker he added. «It’s very likely that even immigration lawyers and consultants don’t have the right information, because changes are happening very quickly.»
But it also means exporters who get paid in U.S. dollars bring in more money. The Canadian dollar has slipped to its lowest level in five years — and when excluding the depths of the COVID-19 pandemic, the loonie is weaker than it’s been since 2015. Earl Davis, head of fixed income and money markets at BMO Global Asset Management, breaks down the slide. Colborne says even though his company stands to benefit, the low dollar reflects badly on the state of the broader Canadian economy. Canada has «higher borrowing costs that are hitting an over leveraged household sector. We have soft commodity prices, we have weak business investment, and we have poor productivity, right?» said Schamotta. Trading levels remained muted until the pandemic crashed into the economy.