The Canadian dollar weakened to 1.38 per USD in May as softer core inflation data reinforced expectations that the Bank of Canada may continue looking through the impact of higher energy prices. While headline inflation accelerated to 2.8% in April due to rising gasoline costs linked to the Middle East conflict, the Bank of Canada’s preferred core inflation gauges slowed more than expected to their lowest levels in five years, signaling easing underlying price pressures outside the energy sector. The data aligned with recent central bank guidance that energy-driven inflation may prove temporary and reduced expectations of rate hikes. Conversely, robust labor data and higher core inflation in the US raised expectations of a rate hike by the Federal Reserve this year, supporting the US dollar.
The USD/CAD exchange rate fell to 1.3809 on May 25, 2026, down 0.06% from the previous session. Over the past month, the Canadian Dollar has weakened 1.33%, and is down by 0.54% over the last 12 months. Historically, the USDCAD reached an all time high of 1.62 in January of 2002. Canadian Dollar - data, forecasts, historical chart - was last updated on May 25 of 2026.
The USD/CAD exchange rate fell to 1.3809 on May 25, 2026, down 0.06% from the previous session. Over the past month, the Canadian Dollar has weakened 1.33%, and is down by 0.54% over the last 12 months. The Canadian Dollar is expected to trade at 1.38 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.36 in 12 months time.