The US dollar to Canadian dollar exchange rate has recently climbed above 1.3800, a level not seen since 2018. This is due to a combination of factors, including the Bank of Canada’s steady monetary policy and markets anticipating hawkish decisions from the Federal Reserve.
The Bank of Canada has kept its policy rate steady at 0.25%. This has helped to support the Canadian dollar, as it has kept interest rates low and encouraged borrowing. The Bank of Canada has also maintained its commitment to keeping inflation low, which has helped to keep the Canadian dollar strong.
At the same time, markets are anticipating hawkish decisions from the Federal Reserve. The Fed is expected to raise interest rates in the near future, which could lead to a stronger US dollar. This could put pressure on the Canadian dollar, as higher US interest rates could make it less attractive for investors to hold Canadian assets.
The US dollar to Canadian dollar exchange rate has also been affected by global economic conditions. The US economy has been growing at a faster rate than the Canadian economy, which has helped to support the US dollar. Additionally, the US and Canada have different trade policies, which can affect the exchange rate.
Overall, the US dollar to Canadian dollar exchange rate climbing above 1.3800 is due to a combination of factors. The Bank of Canada’s steady monetary policy and markets anticipating hawkish decisions from the Federal Reserve have helped to support the US dollar. Additionally, global economic conditions and different trade policies have also had an impact on the exchange rate.
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