Economists are predicting that the Canadian dollar could rise this year.
Economists are predicting the Canadian dollar to perform better than the US dollar in 2023, but the full impact will be delayed until the domestic and global economies stabilize after central banks dramatically increased interest rates in 2022.
That said, the Loonie has had a mixed performance against popular currencies last year.
The below list shows the relative performance of CAD against the top 20 most trade currencies over the last 12 months. We can see that CAD has increased the most against the Norwegian krone (9.5%), followed by the Swedish krona (8.2%) and South African rand (6.6%). The value of CAD has decreased the most against the Mexican peso (-13%), followed by the Singapore dollar (-7.4%) and Swiss franc (-5.7%).
The Bank of Canada is not expected to cut interest rates any more aggressively than the US Federal Reserve, which should relatively help the Canadian dollar.
The end of the US dollar’s dominance in global currency markets may also help the Canadian dollar.
Markets are currently the most bearish on the CAD since the Covid recession. A change of heart would certainly provide the impetus for the Loonie to appreciate.
Most forecasters expect the CAD to outperform the USD in 2023.
It’s always hard to predict exchange rates including forecasting the CAD dollar, most would say impossible! But there is no need to pay more than you have to when sending or spending abroad.
When choosing a provider to send money abroad finding the best exchange rate is generally everyone’s number one factor. Other important criteria to also consider are transfer speed, delivery options (bank transfer or cash pickup), customer service, mobile apps and extra fees.
Loading exchange rates...
|
|
||
|
|
||
|
|
||
|
|
Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors or users should not be taken as a reference to buy or sell any financial product.