The Canadian dollar (CAD) has faced challenges recently, primarily driven by softening oil prices, which are crucial for a commodity-linked currency like the CAD. As of mid-October 2025, oil prices have fallen to 14-day lows near $63.38, sitting 3.8% below its three-month average of $65.89. With Canada being a significant oil exporter, the decline in oil prices has a direct impact on the CAD's value. Analysts are closely monitoring the upcoming Canadian jobs report, as a cooling labor market could lead to further depreciation of the CAD.
Recent forecasts indicate mixed sentiment surrounding the CAD. The Bank of Canada's decision to lower the policy interest rate to 2.5% in September 2025 amid rising economic risks has made the CAD less attractive to investors. As reported by experts, the Canadian dollar found some stabilization against the USD following Federal Reserve Chair Jerome Powell's hints at potential rate cuts, which weakened the USD and provided some support for the CAD. However, continued uncertainty regarding U.S.-Canada trade agreements and a depreciating CAD, influenced by the declining oil prices, remains a concern for future valuations.
In contrast, the Chilean peso (CLP) continues to be influenced by different factors such as a maintained policy interest rate of 5% by the Central Bank of Chile and a moderated inflation rate of 4.4%, with expectations to reach the target of 3% by 2026. However, challenges loom ahead with the U.S. imposing significant tariffs on Chilean copper exports, potentially affecting the CLP, as copper is a key revenue source for Chile. Additionally, upcoming presidential elections in November 2025 may introduce new policy dynamics that could sway investor confidence in the CLP.
As of the latest data, the CAD to CLP exchange rate is at 668.5, which is 2.9% below its three-month average of 688.7, indicating a stable trading range with recent volatility. The performance of both currencies will hinge on external factors such as global economic trends, commodity prices, and domestic monetary policies, making it essential for businesses and individuals engaged in international transactions to stay abreast of these developments to optimize their currency exchanges.
