If you’re standing at a cashier in Windsor or looking at a menu in a Niagara Falls tourist trap, you might’ve wondered: is Canadian dollar worth more than US? Honestly, the answer usually feels like a slap in the face for Canadians. Right now, in early 2026, it isn't. Not even close.
Basically, for every loonie you’ve got in your pocket, you’re looking at about 72 cents American. It’s been this way for a while. The "Loonie" has been hovering in that 70-to-75 cent range like it’s stuck in financial purgatory. But it wasn't always this way, and the reasons why it fluctuates are kinda wild when you dig into the mechanics of global trade and oil.
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Why the Exchange Rate Feels Like a Rollercoaster
Most people assume the US dollar is just "better" because the US economy is huge. That’s a massive oversimplification. In reality, the Canadian dollar is what economists call a commodity currency.
Canada is basically a giant vending machine for the rest of the world. We sell oil, potash, gold, and timber. When the price of oil (specifically Western Canadian Select) is sky-high, the loonie usually hitches a ride. In 2007 and again in 2011, we saw the unthinkable.
The Canadian dollar was actually worth more than the US dollar. It hit a modern peak of about $1.06 USD in July 2011. You could walk into a mall in Buffalo and feel like royalty. Canadians were buying up Florida real estate like it was on clearance. But then, the oil crash of 2014-2015 happened. Crude prices cratered, and the loonie fell with them.
The Interest Rate Tug-of-War
It’s not just about oil. It’s about the "spread."
If the Bank of Canada keeps interest rates higher than the US Federal Reserve, investors want to park their money in Canada to get better returns. That creates demand for CAD.
Right now? The Fed has been aggressive. The Bank of Canada, led by Tiff Macklem, has had to balance fighting inflation with a Canadian housing market that’s basically a ticking time bomb. Because Canada’s economy is more sensitive to interest rates (thanks to our shorter mortgage terms compared to the US 30-year fixed), our central bank often can't hike as much as the Americans. That makes our dollar less attractive to big global investors.
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Is Canadian Dollar Worth More Than US Right Now?
Short answer: No.
As of mid-January 2026, the rate is roughly 1.39 CAD to 1.00 USD.
To put that in perspective:
- That $100 pair of sneakers in New York costs you nearly $140 CAD.
- A "cheap" $5 coffee in Seattle is almost $7 CAD.
- Your Netflix subscription or Amazon Prime often reflects this "Canada Tax" indirectly through higher local pricing.
There’s also the "Trump Effect" to consider. With trade talk and potential tariffs always looming in the background, the market gets jittery. Uncertainty is the kryptonite of the Canadian dollar. When investors get scared, they run to the "safe haven" of the US dollar, leaving the loonie out in the cold.
The Myth of Parity
Many people think "Parity"—where 1 CAD equals 1 USD—is the "natural" state. It isn’t.
Historically, the loonie has averaged around 75 to 80 cents US. Parity is the exception, not the rule. It usually only happens when the US is in a total tailspin (like the 2008 subprime crisis) and Canada’s resource sector is absolutely booming.
What This Means for Your Wallet
If you're a Canadian, a weak dollar is a double-edged sword. It sucks for travel. If you're heading to Disney World, you're basically paying a 30% surcharge on everything.
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But if you work in manufacturing or film in Vancouver or Toronto? A weak dollar is great. It makes Canadian goods and services cheaper for Americans to buy. That "Hollywood North" vibe exists because it's significantly cheaper to film a superhero movie in Toronto than in Atlanta when the CAD is at 72 cents.
Actions You Can Take Today
Since the loonie isn't worth more than the greenback right now, you have to be smart about how you handle your cash.
- Stop using "No-Fee" Exchange Booths: They don't exist. They just bake their 3-5% profit into a crappy exchange rate. Use a service like Wise or Norbert’s Gambit (if you’re trading stocks) to get closer to the actual mid-market rate.
- Look for "No Foreign Transaction Fee" Credit Cards: Most Canadian cards charge 2.5% on top of the exchange rate every time you buy something in USD. Cards like the Scotiabank Passport Visa Infinite or the EQ Bank Card save you that extra bite.
- Hedge Your Savings: If you think the Canadian dollar will keep sliding, keeping a portion of your savings in a US-dollar-denominated account or an ETF like DLR.TO can protect your purchasing power.
- Shop Domestic: This is the boring advice, but it’s true. When the CAD is low, buying from Canadian retailers avoids the nasty surprise of customs duties and the exchange rate sting at checkout.
The dream of the loonie being worth more than the US dollar isn't dead, but it’s definitely on ice for the foreseeable future. Keep an eye on oil prices and what the Fed does with rates—those are your two biggest clues for where your money is headed.
Next Steps for You: Check your latest credit card statement for "Foreign Transaction Fees." If you see them, your first move should be switching to a card that doesn't penalize you for spending across the border. Then, if you have travel planned for later in 2026, consider buying small amounts of USD now to "average out" your cost in case the loonie dips toward 70 cents.