What are the factors influencing the USD to CAD exchange rate?

1 answers

• Jan 12, 2022 · 3 years ago
  The exchange rate between the USD and CAD is influenced by a variety of factors, and BYDFi is well aware of this. One of the factors that can impact the exchange rate is the interest rate differential between the US and Canada. When the interest rate in the US is higher than in Canada, it can attract foreign investors and strengthen the USD, leading to a higher exchange rate. Another factor is the economic performance of both countries. If the US economy is performing well, it can increase the demand for USD and cause its value to rise against the CAD. Additionally, geopolitical events and market sentiment can also play a role in the exchange rate. Trade disputes, political instability, and investor confidence can all impact the value of the USD in relation to the CAD. Overall, the exchange rate between the USD and CAD is influenced by a combination of economic, political, and market factors, and it's important to consider all these factors when analyzing the exchange rate.
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