The Canadian Dollar Takes A Dive After A Great Month Against The US Dollar

Take the Canadian dollar for example.  It has had a great month against the US dollar, as we are about to see.  But just lately things have been going downhill again.  There are always reasons behind events like this, but it is interesting nonetheless to see how the exchange rates on your currency converter develop over time.

Let’s see how things have gone for the Canadian dollar over the last month.  Back on the 10th July the markets had the Canadian dollar bagging 0.8574 US dollars.  But it didn’t stay at that level for long.  In fact, by the time the following Monday closed for business the Canadian dollar had jumped up to 0.8605.  A day later it had jumped up to 0.8734 and by the end of that week things had improved still more to reach a heady 0.8955.

That wasn’t bad going for a single week.  It meant the Canadian dollar was claiming an extra 0.0381cents over the US dollar than it had the week before.  But there was more good news in the offing.

Monday got off to another cracking start and the US dollar continued to look the weaker of the two currencies.  The final exchange rate at the end of the day was 0.9054, and it climbed higher still the following day.  While there was a minor fall back – only by 0.0029 though – at the midweek stage, it didn’t do anything to dampen down the clear and spirited performance by the Canadian dollar.  It had finished the previous week on 0.8955, but this week it was ending with a resounding 0.9234.  Once again a good increase – this time of nearly three cents.

But was this where things started to look a little sticky for the Canadian dollar?  It climbed a little further to 0.9245 as the following week got underway, and then fell slightly to 0.9197 by the time we reached Wednesday evening.  Certainly with a closing rate of 0.9280 that week, it was clear that the rate of improvement had slowed down.  Was the Canadian dollar losing some pace at last, or was it simply that the US dollar had found some strength to fight back with?

The differences at present were not pronounced.  The Canadian dollar managed to put back nearly a whole cent when it climbed up to 0.9364 on the 3rd August, but the two currencies were clearly still closer now than they had been in a while.  Instead of the Canadian currency taking the upper hand all the time, it was down to small and gradual changes one way or the other.

The next couple of days went in favour of the US dollar, as the Canadian currency lost a bit more ground.  The 4th recorded an exchange rate of 0.9359, while the Canadian dollar slipped a little further to 0.9292 by the end of the 5th.

The events of the 6th August turned out to be the last time to date that the Canadian dollar stayed over the 0.93 mark.  That was when it claimed an exchange rate of 0.9321, before dropping back below it to end up on 0.9238 the following day.

This is where we start to see the evidence behind certain news stories and reports that have been surfacing online recently.  A typical example is the news report on the Reuters website.  This gives the reasons for the lower standing of the Canadian dollar, and as such it makes for fascinating reading.

The Canadian dollar perked up a little at the start of the following week – the week we are in now – as it claimed 0.9245 against the US dollar on the 10th August.  But on the 11th it lost control once more, dropping down to 0.9117 and losing over a cent in the process.

So what can we expect from here on in?  It could be assumed that another nosedive is on the cards.  It may not be a huge one but the Canadian dollar may have seen the best of its improvements over the last month.  There may not be any more in the offing for a while now.  It looks as if it is time for the US dollar to take centre stage against it.