Checking the exchange rate is basically a daily ritual for anyone living near the border or doing business across it. You've likely seen the numbers flickering on your banking app or a news ticker, but honestly, there's a lot more to the story than just a decimal point. As of January 18, 2026, the answer to how many us dollars is one canadian dollar is approximately 0.72 US dollars.
That's the "mid-market" rate. It's the clean, theoretical number you see on Google, but it’s rarely what you actually get in your pocket.
If you walk into a bank in Toronto or a currency kiosk at LAX, that 0.72 vanishes. You’ll probably see something closer to 0.69 or 0.70 after the "spread" takes its bite. This gap is where banks make their money, and it’s why understanding the CAD to USD conversion matters more than just knowing a single number.
The Real Price of Your Loonie Today
Right now, $1 CAD gets you roughly 72 cents USD.
Over the last few weeks, we’ve seen the Canadian dollar—affectionately known as the loonie—sliding slightly from the 73-cent mark it touched earlier this year. Why? It's a mix of oil prices, interest rate gaps, and a little bit of global jitters.
Currency isn't static. It’s more like a see-saw. When the US economy shows even a tiny bit of unexpected strength, the US dollar (USD) tends to get "heavier," pushing the Canadian dollar (CAD) down. Currently, the Bank of Canada and the US Federal Reserve are playing a high-stakes game of chicken with interest rates.
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Why the Rate Keeps Shifting
Think of the exchange rate as a popularity contest. Investors want to put their money where it earns the most "rent" (interest).
- Interest Rate Differentials: If the US Federal Reserve keeps rates at 3.5% while the Bank of Canada holds steady at 2.25%, global investors will naturally flock to the US to get that better return. This makes the USD more valuable.
- The Oil Factor: Canada is a massive exporter of crude. When the price of West Texas Intermediate (WTI) oil climbs, the CAD usually follows. When oil dips, the loonie often catches a cold.
- Trade Tensions: In this current 2026 landscape, ongoing discussions around CUSMA (the trade agreement between the US, Canada, and Mexico) have added a layer of "wait-and-see" to the markets.
How Many US Dollars is One Canadian Dollar: Breaking Down the Math
Let’s get practical for a second. If you’re planning a trip or a purchase, you need to know how these numbers actually scale. Because honestly, 0.72 sounds small until you're buying a $50,000 truck or a $2,000 MacBook.
At a rate of 0.718, here is what your Canadian cash looks like in the States:
- $10 CAD = $7.18 USD
- $100 CAD = $71.82 USD
- $1,000 CAD = $718.16 USD
Notice how the gap widens? If you're a Canadian business buying $10,000 worth of US software, you aren't just paying $10,000. You're shelling out nearly $14,000 CAD. That’s a massive hit to the bottom line that a lot of startups forget to budget for.
The Misconception of "Parity"
People always ask, "Will the Canadian dollar ever be equal to the US dollar again?"
We haven't seen "parity"—where 1 CAD equals 1 USD—regularly since the early 2010s. For that to happen again, we’d need a massive surge in commodity prices or a total stagnation of the US economy. Most experts at institutions like RBC and Scotiabank aren't betting on parity anytime soon. In fact, a slightly weaker CAD is actually good for Canadian exports because it makes Canadian-made goods cheaper for Americans to buy.
Where to Get the Best Rate
Stop using the airport kiosk. Seriously.
If you want to get as close as possible to that 0.72 rate, you have to be smart about the "where." Most big banks (TD, RBC, BMO) charge a 2.5% to 3% fee hidden inside the exchange rate.
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Better alternatives include:
- Norbert’s Gambit: This is a trick used by savvy Canadian investors to exchange large sums of money within a brokerage account (like Questrade or Wealthsimple) for basically the cost of a stock trade. It’s the gold standard for avoiding fees.
- Wise (formerly TransferWise): They use the real mid-market rate and just charge a small, transparent fee.
- Credit Cards with No Foreign Transaction Fees: Cards like the Scotiabank Passport Visa Infinite don't tack on that extra 2.5% fee every time you swipe your card in New York or Florida.
What to Watch for the Rest of 2026
The loonie is in a "holding pattern" for the moment. Economists are looking closely at the Bank of Canada’s next move. If they hint at a rate hike to fight "sticky" inflation, you might see the CAD jump back toward 74 or 75 cents.
On the flip side, if US growth continues to outpace Canada—which many 2026 forecasts suggest—the loonie could drift toward 70 cents. That’s the "psychological floor." If it breaks below 70 cents, things get very expensive for Canadians very quickly.
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Practical Next Steps:
If you need to move money across the border, don't do it all at once. "Dollar-cost averaging" works for currency too. Move half now and half in a month to hedge your bets against a sudden swing in the market. Also, double-check your credit card's fine print before your next cross-border trip; avoiding that 2.5% fee is the easiest "win" you'll find today.