The proposed duties, ranging from 25% to as high as 40%, are set to take effect on August 1 if no trade deals are reached. Introduced in 1858, the Canadian dollar (CAD) is the official currency of Canada. The symbol of the Canadian dollar is $, with symbols such as CA$, Can$ and C$ also sometimes used to distinguish CAD from other dollar-denominated currencies. The U.S. dollar is the currency most used in international transactions. Several countries use the U.S. dollar as their official currency, and many others allow it to be used in a de facto capacity.
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In 1982, the 1¢ coin was changed to dodecagonal, and the 5¢ was further debased to a cupro-nickel alloy. In 1987 a $1 coin struck in aureate-plated nickel was introduced. In 1997, copper-plated zinc replaced bronze in the 1¢, and it returned to a round shape. This was followed, in 2000, by the introduction of even cheaper plated-steel 1¢, 5¢, 10¢, 25¢ and 50¢ coins, with the 1¢ plated in copper and the others plated in cupro-nickel. In 2012, the multi-ply plated-steel technology was introduced for $1 and $2 coins as well.
Also in that year mintage of the 1¢ coin ceased and its withdrawal from circulation began in 2013. Importance of the Canadian DollarThe Canadian Dollar is the seventh-most traded currency on the Forex market, as many institutions and individuals trade the CAD. People also refer to the CAD as the Loonie, buck, Huard, and Piastre (in French). The Canadian Dollar is held as a reserve currency by a number of central banks. It is also known as a commodity currency, due to the country’s substantial raw material exports. The standard set of designs has Canadian symbols, usually wildlife, on the reverse, and an effigy of Charles III on the obverse.
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That said, Ottawa remains under pressure to conclude a new security and economic partnership deal with Washington by July 21. In the meantime, Canada continues to face existing US tariffs on key exports, including steel, aluminum, automobiles, and fentanyl-related products, which keep trade relations between the two allies under strain. Significant design changes to the notes have occurred since 1935, with new series introduced in 1937, 1954, 1970, 1986, and 2001. Canada produced its first gold dollar coins in 1912 in the form of $5 and $10. The obverse carries an image of King George V and on the reverse is a shield with the arms of the Dominion of Canada.
Canadian Dollar weakens as trade tensions flare and risk appetite fades
As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar. Banks and traditional providers often have extra costs, which they pass to you by marking up the exchange rate. Our smart tech means we’re more efficient – which means you get a great rate.
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The Colony of British Columbia adopted the British Columbia dollar as its currency in 1865, at par with the Canadian dollar. When British Columbia joined Canada as its sixth province in 1871, the Canadian dollar replaced the British Columbia dollar. SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms.
- In 1982, the 1¢ coin was changed to dodecagonal, and the 5¢ was further debased to a cupro-nickel alloy.
- The price of Oil is a key factor impacting the value of the Canadian Dollar.
- The headline PMI rose to 53.3 in June, up sharply from 48.9 in May, marking the highest reading in four months and indicating renewed expansion.
- It is also common for American coins to be found among circulation due to the close proximity to the United States and the fact that the sizes and colours of the coins are similar.
How does inflation data impact the value of the Canadian Dollar?
In 1851, the Parliament of the Province of Canada passed an act for the purposes of introducing a sterling-based unit,citation needed with decimal fractional coinage. The idea was that the decimal coins would correspond to exact amounts in relation to the U.S. dollar fractional coinage. CAD acts as the fifth most-held reserve currency in the world after the US dollar (USD), the euro (EUR), British pound sterling (GBP) and the Japanese yen (JPY). The Canadian dollar, ranking as the sixth most traded currency globally, is also known as a commodity currency, due to Canada’s rich natural resources and significant raw material exports. On July 3, 1934,20failed verification with only 10 chartered banks still issuing notes, the Bank of Canada was founded.
Save money when you send, spend and get paid in over 40+ currencies. See how much you can get when you convert your Canadian or foreign currency. Production was maintained through 1967 with the exception of the war years between 1939 and 1945.
In 1841, the Province of Canada adopted a new system based on the Halifax rating. The new Canadian pound was equal to four US dollars (92.88 grains gold), making £1 sterling equal to £1.4s.4d. Thus, the new Canadian pound was worth 16 shillings and 5.3 pence sterling. Cryptocurrency prices show signs of recovery on Tuesday following a volatile session the prior day, driven by tariff uncertainty and trade tensions between the United States (US) and its trading partners. The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down.
Executing a trade late in the week might result in a delayed settlement until the following week, as forex markets are closed on weekends. The CAD and USD can be traded 24×5, starting from the time markets open on Monday mornings in Sydney until they close on Fridays at 5 PM in New York. However, the period between 3-4 PM GMT is often a good time to convert Canadian Dollars to US Dollars because currency market liquidity and trading volume tend to be the highest during this time.
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If economic data is weak, however, the CAD is likely to fall. Our currency rankings show that the most popular Canadian Dollar exchange rate is the CAD to USD rate. The currency code for Dollars is CAD, and the currency symbol is $. Below, you’ll find Canadian Dollar rates and a currency converter.
- In 1871, Prince Edward Island went decimal within the U.S. dollar unit and introduced coins in the denomination of 1 cent.
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- As such, the Spanish dollar was worth slightly more than the U.S. dollar, and likewise, the Newfoundland dollar, until 1895, was worth slightly more than the Canadian dollar.
- That said, Ottawa remains under pressure to conclude a new security and economic partnership deal with Washington by July 21.
Except for 1¢ coins struck in 1859, no more coins were issued until 1870, when production of the 5¢ and 10¢ was resumed and silver 25¢ and 50¢ were introduced. Between 1908 and 1919, sovereigns (legal tender in Canada for $4.86+2⁄3) were struck in Ottawa with a “C” mintmark. The last 1¢ coin (penny) to be minted in Canada was struck on May 4, 2012,15 and distribution of the penny ceased on February 4, 2013.16 Ever since, the price for a cash transaction is rounded to the nearest five cents. The penny continues to be legal tender, although it is only accepted as payment and is not given back as change. While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money.
The new announcements are silent on Singapore, India and the Philippines, which might stand to benefit from tariff concessions if negotiations progress favourably. Following Monday’s volatile action, Gold continues to build on recent losses and now challenges the $3,300 region per troy ounce. The Greenback remains firm and US Treasury bond rates continue to increase as the Trump administration pushes the tariff deadline to August 1, preventing the XAU/USD from swinging north. Join millions from across the globe who trust Remitly to send money home. Rest easy knowing your transfers will be delivered on time, or we’ll refund your fees. To view rates between the US Dollar and the Canadian Dollar for a particular year, click on one of the links below.
The author has not received compensation for writing this article, other than from FXStreet. Adding to the mix, the latest Ivey Purchasing Managers Index (PMI) surprised to the upside, offering a glimpse of strength in Canada’s economic activity. The headline PMI rose to 53.3 in June, up sharply from 48.9 in May, marking the highest reading in four months and indicating renewed expansion. Despite the positive PMI headline, the Canadian Dollar struggled to capitalize, with traders more focused on external headwinds and global risk sentiment. Tariff tensions are back in focus after US President Donald Trump posted official letters on his social media platform, Truth, warning of new reciprocal tariffs on 14 countries, including Japan, South Korea, and South Africa.
Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive. Looking ahead, all eyes will be on the FOMC meeting minutes, due to be released on Wednesday, which could offer fresh clues on the Federal Reserve’s policy path amid growing global trade tensions. Any sign of caution scalping forex guide or delayed rate cuts may further support the US Dollar. On the Canadian side, attention will turn to the monthly employment report on Friday, which will provide insight into the health of the domestic labor market. However, Canada has not been included in this global tariff extension, thanks to its separate bilateral trade agreement with the United States.