The Canadian Dollar (CAD) weakened significantly in 2024, reaching multi-year lows against the US Dollar (USD). The Bank of Canada's (BoC) rapid rate cuts, exceeding those of the Federal Reserve (Fed), widened the interest rate differential and fueled the CAD's decline.
The Canadian Dollar had a rough run in 2024, falling to nearly five-year lows. A rapid pace of rate cuts from the Bank of Canada has widened the CAD’s rate divergence with the USD. As the Fed ponders slower moves on interest rates, the Loonie’s rate differential could widen further in 2025. The Canadian Dollar (CAD) spent most of 2024 on the ropes, battling into a familiar midrange before giving up in the last quarter and backsliding into multi-year lows against the US Dollar (USD).
Rumors of a broad-market downturn in the USD were wildly overblown, with the Greenback’s Q4 stellar performance further battering the Loonie. Canadian Dollar in 2024: Bank of Canada aggressive easing weighs USD/CAD rose into the 1.4400 handle at the tail end of the year, wrapping up 2024’s chart action around 9% higher than it started near 1.3230. The Bank of Canada (BoC) and the Federal Reserve (Fed) both kicked off a rate-cutting cycle in 2024, but the BoC’s faster and more furious pace of rate trims sent the Loonie tumbling as USD/CAD’s rate differential widened through the second half of the year. Evolution of interest rates in the US and Canada. Source: Trading Economics The BoC’s main reference rate peaked at 5.0% in July 2023, and it took the better part of a year for the BoC to finally blink and start delivering rate cuts, opening with a 25 bps rate cut in June. The BoC followed up with four more cuts through the second half of the year, with the last two cuts accelerating to 50 bps each. Canada’s interest rate now stands at 3.25%, still well above 2022’s rock bottom 0.25% but still far enough below the US’ fed funds rate, which only declined from 5.5% to 4.5% over the same period. The Fed held off on rate cuts much longer than the BoC, with the US central bank not delivering 2024’s first Fed rate cut until September. Global Crude Oil markets also provided little support for the Canadian Dollar in 2024
Canadian Dollar US Dollar Bank Of Canada Federal Reserve Interest Rates
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bill Skarsgård's Rotten Tomatoes Cold Streak Is Officially Over Thanks To Acclaimed Upcoming Horror MovieBill Skarsgard in the posters for The Crow (2024), Boy Kills World (2024), and Nosferatu (2024)
Read more »
Canadian Dollar bucks post-BoC rate cutThe Canadian Dollar (CAD) bounced on Wednesday, regaining one-fifth of one percent against the Greenback and meagerly recovering from recent lows.
Read more »
iPad Mini (2024) vs iPad Air (2024): Which One is Right for You?Apple's 2024 iPad lineup includes a refreshed iPad mini and a new iPad Air with two screen sizes. This comparison helps you decide between these two popular models.
Read more »
See How and What You Photographed in 2024 With Google Photos’ 2024 RecapGoogle Photos' new AI-powered year-in-review, 2024 Recap, shows users how and what they photographed in 2024.
Read more »
Canadian Man Crowned as King of Spreadsheets at the 2024 Microsoft Excel World ChampionshipGuess you could say this guy really excels at spreadsheets.
Read more »
US Dollar mixed as a headline-fueled Monday kicks off final normal trading week of 2024The US Dollar (USD) trades slightly lower on Monday after a string of data and headlines that took away the attention from the US Federal Reserve’s rate decision, which will be released later this week on Wednesday.
Read more »