Whether you are traveling, shopping or investing in Canadian stocks, it is important to understand how much a U.S. dollar buys in relation to Canadian currency. Currency rates fluctuate, and tools are available to allow you to find the current exchange value.
Resource
An easy source find the current exchange rate for any pair of currencies is the currency converter linked on the front page of Yahoo Finance. The three-letter codes for the U.S. and Canadian dollars are USD and CAD, respectively.
Function
In late October 2009, the U.S. dollar was worth approximately $1.05 Canadian. For the first 10 months of 2009, the exchange rate varied from CAD $1.02 to $1.30, with an average of $1.15 to one USD.
Calculations
To determine the value in U.S. dollars of an amount in Canadian dollars, divide by the exchange rate into Canadian dollars. For example, if a USD is worth CAD $1.05, 1divided by 1.05 shows that a CAD is worth U.S. $0.95.
Considerations
Check with your bank or credit card company to determine their exchange rates and fees before traveling and using a debit or credit card in Canada. Credit card purchases may offer the best exchange terms.
Warning
Airport currency exchange booths typically have the least favorable exchange terms. Before traveling, exhange enough money at your local bank to cover expenses like taxis, shuttle buses and tips.
