If you’re standing at a cross-border terminal or just staring at your digital wallet, you probably want a straight answer. Right now, on January 18, 2026, the Canadian dollar is worth approximately $0.72 in US currency. Specifically, the mid-market rate is hovering around 0.7187.
Money moves fast. Honestly, by the time you finish this sentence, that decimal might have twitched. But for most of us—the travelers, the small business owners, and the online shoppers—the big question isn't just the number. It's why the "Loonie" is stuck in the low 70-cent range and what that means for your actual purchasing power.
The Current State of the Loonie
The exchange rate isn't just a static figure; it’s a living reflection of how the world views Canada’s economy compared to the American powerhouse. Over the last year, we've seen the CAD/USD pair bounce between 0.69 and 0.74. It’s been a bit of a rollercoaster, frankly.
If you're exchanging $1,000 CAD, you’re looking at getting roughly $718.70 USD back. But keep in mind, that’s the "pure" rate. If you go to a big bank like TD or RBC, or heaven forbid a kiosk at Pearson International, you'll likely get less. Retail spreads usually take a 2% to 4% bite out of your cash.
Why the Gap Exists
Most people think the Canadian dollar should naturally be closer to the US dollar. They remember those brief windows in 2007 or 2011 when the Loonie hit parity. Those were the exceptions, not the rule.
The US dollar is the world’s reserve currency. When global markets get jittery—whether due to geopolitical tension or shifts in tech stocks—investors run to the Greenback. It’s the "safe haven." Canada, while stable, is often viewed as a "resource play." When oil prices are high, the Loonie climbs. When the world is worried about a slowdown, the Loonie usually feels the pinch first.
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What is the Canadian Dollar Worth in US Currency Today?
To understand the current value, we have to look at the "Big Three" drivers: interest rates, oil, and inflation.
- Interest Rate Divergence: The Bank of Canada (BoC) and the US Federal Reserve are currently in a delicate dance. If the Fed keeps rates higher for longer to fight American inflation, while the BoC cuts rates to help struggling Canadian homeowners, the CAD drops. Investors want the higher yield of the US dollar.
- The "Black Gold" Factor: Oil is Canada’s biggest export. Western Canadian Select (WCS) prices dictate a lot of our currency's strength. Even with the global push toward renewables, the CAD remains a "petrodollar" in the eyes of international traders.
- Productivity Problems: There is a growing conversation among economists about Canada’s productivity gap. Simply put, the US economy has been growing more efficiently. That makes the USD more attractive to big-money investors.
The Reality of Retail Exchange Rates
Let's get practical for a second. If you’re heading to Florida for a week, you aren't getting the 0.7187 rate you see on Google.
- Credit Cards: Most charge a 2.5% foreign exchange fee. You're effectively paying about 0.74 CAD for every USD.
- Currency Exchange Booths: These are the worst. You might see a rate closer to 0.76 or 0.77.
- Digital Apps: Services like Wise or Revolut are usually your best bet, as they stay within a fraction of a percent of the mid-market rate.
I’ve spent a lot of time looking at these spreads. It’s frustrating. You see the "official" value, but your bank statement tells a different story. If you're doing a large transaction, like buying property or paying a cross-border invoice, that 2-cent difference is thousands of dollars.
History Lessons and Future Guesses
In early 2025, the CAD hit a rough patch, dipping toward 0.69. It was a stressful time for importers. Since then, we've seen a bit of a recovery, but we aren't exactly "winning."
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Some analysts at firms like Desjardins or Scotiabank have suggested that the "fair value" of the Loonie is actually closer to 0.75 or 0.76. But markets aren't always fair. They are emotional. If the US economy continues to outperform expectations, the Canadian dollar might stay "undervalued" for the foreseeable future.
Is Parity Possible?
In short: not anytime soon. For the Canadian dollar to reach 1.00 USD again, we would need a "perfect storm." We’d need oil to skyrocket past $100 a barrel and the US economy to significantly cool down while Canada’s stays hot.
Right now, the opposite is happening. The US tech sector is booming, and Canada's housing-heavy economy is feeling the weight of high debt loads.
Actionable Steps for Your Money
Since the Canadian dollar is worth roughly 72 cents US right now, you need to be smart about how you move it.
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- Audit your subscriptions: Many of us pay for Netflix, Disney+, or SaaS tools in USD without realizing the conversion cost. Switch to CAD billing if the option exists.
- Use a No-FX Credit Card: If you travel often, get a card that doesn't charge that 2.5% fee. It’s the easiest way to "save" money on the exchange rate.
- Norbert’s Gambit: For those with investment accounts (Questrade, Wealthsimple, etc.), look into this trick. It allows you to swap CAD for USD using an ETF, bypassing bank fees entirely. It’s a bit technical, but it’s the gold standard for savvy Canadians.
- Hold USD in a High-Interest Account: If you think the CAD will drop further, keeping some of your savings in a US-denominated account can act as a hedge.
The exchange rate is a moving target. Don't obsess over the daily fluctuations unless you're a day trader. Focus on the tools you use to convert it. Minimizing the "middleman" fee is often more important than waiting for the rate to move half a cent in your favor.