What factors influenced the USD to Canadian dollar exchange rate in 2016?
Srijan KatuwalDec 26, 2021 · 3 years ago1 answers
Can you explain the factors that had an impact on the exchange rate between the USD and the Canadian dollar in 2016? I'm particularly interested in understanding how the exchange rate was influenced by the digital currency market.
1 answers
- Dec 26, 2021 · 3 years agoAs an expert in the field, I can tell you that several factors influenced the USD to Canadian dollar exchange rate in 2016. Economic indicators, such as GDP growth, employment rates, and inflation, played a significant role. If the US economy was performing better than the Canadian economy, the USD would strengthen against the Canadian dollar, resulting in a higher exchange rate. Conversely, if the Canadian economy outperformed the US economy, the Canadian dollar would strengthen, leading to a lower exchange rate. Monetary policies, including interest rate decisions by the Federal Reserve and the Bank of Canada, also impacted the exchange rate. Geopolitical events, such as the US presidential election and Brexit, added volatility to the market. However, the digital currency market had a minimal influence on the USD to Canadian dollar exchange rate in 2016. While cryptocurrencies were gaining popularity, their impact on traditional currency exchange rates was still limited.
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