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CAD/USD exchange rate

How many US dollars one Canadian dollar buys, which affects returns on cross-border investments.

Canadian InvestingBeginner

Definition

A Canadian who owns US stocks earns the stock's return and also gains or loses with the exchange rate. If the US dollar rises against the Canadian dollar, US holdings are worth more in Canadian terms, and the reverse when it falls.

Watch out for

Currency moves can add to or offset the performance of the investment itself.

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