Updated June 2024
Figure S1.7 shows the historical U.S. and Canadian dollar exchange rates.
Summary
The U.S. and Canadian dollar exchange rate averaged US$0.74 in 2023, about 4% lower than in 2022.
Over the forecast period of 2024 to 2033, the exchange rate is projected to gradually increase along with oil prices before stabilizing at US$0.78 in 2026 and staying flat afterwards.
In 2023
The Canadian dollar depreciated 4% relative to the U.S. dollar, from US$0.77 in 2022 to US$0.74 in 2023. The exchange rate fluctuated between US$0.73 and US$0.76 throughout the year before ending at US$0.74 in December.
Forecast for 2023 to 2032
The Bank of Canada and the U.S. Federal Reserve are anticipated to begin reducing their interest rates in 2024 as consumer inflation falls back towards the target rate of 2%. The exchange rate is forecast to average US$0.74 in 2024 and increase steadily to US$0.78 by 2026, supported by interest rate normalization and increased economic growth.
Learn More
- Methodology
- Data [XLSX]
