The US dollar to Canadian dollar exchange rate has recently risen above 1.3800, a level not seen since 2018. This surge in the exchange rate is due to a combination of factors, including the Bank of Canada’s steady policy, the US Federal Reserve’s hawkish stance, and investors betting on the US dollar’s strength.
The Bank of Canada has maintained a steady policy, keeping interest rates low and refraining from any major changes to monetary policy. This has helped to keep the Canadian dollar relatively stable, allowing it to remain competitive against the US dollar.
The US Federal Reserve has also taken a hawkish stance, raising interest rates and signaling that further hikes may be on the horizon. This has increased investor confidence in the US dollar, leading to increased demand for the currency and pushing up its value relative to the Canadian dollar.
Finally, investors have been betting on the US dollar’s strength, expecting it to remain strong against the Canadian dollar in the near future. This has further contributed to the appreciation of the US dollar against its Canadian counterpart.
Overall, the combination of these factors has resulted in the US dollar to Canadian dollar exchange rate rising above 1.3800. This is a positive sign for both countries and could lead to increased economic activity in both countries as businesses take advantage of the favorable exchange rate. It remains to be seen how long this trend will last, but for now it is providing a boost to both economies.
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