The US dollar to Canadian dollar exchange rate has been climbing steadily over the past few weeks, reaching a new high of 1.3800 on April 21, 2021. This is the highest exchange rate since April 2018 and is being driven by a combination of factors.
First, the Bank of Canada has been maintaining a relatively low interest rate policy in order to stimulate economic growth. This has made the Canadian dollar less attractive to investors, resulting in a weaker currency relative to the US dollar.
Second, the US Federal Reserve has been signaling that it will be taking a more hawkish stance on monetary policy in the near future. This means that the Fed is likely to raise interest rates sooner than expected, which could further strengthen the US dollar.
Finally, there is also speculation that the US and Canada may reach a new trade agreement soon. This could result in increased investment flows into Canada, which would help to support the Canadian dollar.
Overall, the US dollar to Canadian dollar exchange rate is currently being supported by a combination of Bank of Canada policy, expectations of a hawkish US Federal Reserve, and speculation of a new trade agreement between the two countries. While these factors could change in the future, it appears that the exchange rate could remain at or above 1.3800 for the foreseeable future.
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- Source: Plato Data Intelligence: PlatoAiStream
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