USD / CAD

## What this measures

This measures the spot exchange rate between the Canadian dollar and the US dollar, expressed as the number of Canadian dollars required to purchase one US dollar. It reflects the relative price of the two currencies in foreign exchange markets on each trading day.

## Why it matters

Exchange rates affect the cost of cross-border transactions, the translated value of foreign revenue or expenses, and the competitiveness of goods priced in one currency and sold in another. Organizations with Canadian operations, suppliers or customers face currency exposure that moves with this rate. A shift in the rate changes the local-currency cost of imports, the home-currency value of foreign earnings, and the attractiveness of exports.

## How to read it

A rise means the Canadian dollar is weakening and more CAD are needed to buy one USD; a fall means the Canadian dollar is strengthening. Compare current levels to recent history to gauge whether Canadian-dollar obligations or receivables have become more or less expensive in US-dollar terms. The rate moves continuously, so patterns over weeks or months matter more than single-day changes.

## What it does not say

This rate does not reveal why the currencies moved, the volume of trading behind the price, or the forward expectations embedded in derivatives markets. It reflects the spot price at the time of observation and does not forecast future rates or indicate the cost of actually exchanging large sums, which may include spreads and fees.

## Source

Palanor pulls FRED series DEXCAUS from the Federal Reserve Bank of St. Louis API each night. The Federal Reserve compiles the series from market data.