Canadian Dollar Forward Rates

The chart on the right shows the U.S. Dollar Forward Premium (+) or Forward Discount relative to the Canadian Dollar. The bid-ask midpoint rates shown apply to large-volume transactions in the interbank market around noon time (Eastern) on Friday, November 20, 2009. The precise forward rates, in U.S. Dollars per 1 Canadian Dollar, appear in the table on the left. Also reported are the implied forward premium or discount, and the implied foreign interest rate differential at an annualized rate FIRD=100[(f/s)(1/d)-1], where f and s are the forward and spot rate, and d is the forward time in years. If the Canadian Dollar is trading at a USD forward premium, the Canadian Dollar is expected to appreciate. The reverse is true for a forward discount. However, forward rates are poor predictors of the corresponding future spot rates.

Rate Premium FIRD  Spot   0.9347       1 month   0.9347   0   0.00%   2 months   n/a   n/a   n/a   3 months   0.9347   0   0.00%   6 months   0.9346   -1   -0.02%   1 year   n/a   n/a   n/a   3 years   n/a   n/a   n/a   5 years   n/a   n/a   n/a   7 years   n/a   n/a   n/a   10 years   n/a   n/a   n/a  The exchange rates are in U.S. Dollars per 1 Canadian Dollar. The forward premia (+) or discounts (-1) are expressed in basis points (100-th of a US cent). The FIRD is expressed in percents per annum.

© 2009 by Werner Antweiler, University of British Columbia. All rights reserved. The Pacific Exchange Rate Service is located in Vancouver, Canada. Pacific Home Page | About this service | Contact Pacific