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 Monday, March 18, 2019. 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   0.7500       1 month   0.7507   +7   1.09%   3 months   0.7517   +16   0.87%   6 months   0.7533   +33   0.88%   1 year   0.7565   +65   0.86%   2 years   0.7618   +118   0.78%   3 years   0.7654   +154   0.68%   4 years   0.7688   +188   0.62%   5 years   0.7717   +217   0.57%  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.

© 2019 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