If you’ve been watching the USD to CAD exchange rate lately, you’ve seen a clear story: the Canadian dollar has been losing ground. As of mid-October 2026, USD to CAD is trading around 1.42 , meaning one US dollar buys roughly $1.42 Canadian — close to the pair’s one-year high of about 1.43, touched in early October, and representing a decline of roughly 2% in the Canadian dollar over the past month. For anyone converting US dollars to Canadian dollars — for business, property, tuition, or cross-border payments — timing has rarely mattered this much. At Interchange Financial , Canada’s trusted foreign exchange specialist, clients get access to live USD to CAD rates and expert guidance to make every conversion count. So what’s driving the move? Let’s break down the key factors behind the USD to CAD exchange rate right now. 1. The Interest Rate Gap: The Fed vs. the Bank of Canada Interest rates are the single most important driver of the USD to CAD exchange rate. Investors prefer to hol...