Canadian dollar hits multi-year low as USD/CAD reaches 1.3857

Updated on August 31, 2026. · Written by Gregorio

VERIFIED USD/CAD trades at 1.3857 Canadian dollars per US dollar, per Xe.com's mid-market exchange rate checked on August 31, 2026 (source).

VERIFIED The Bank of Canada held its interest rate at 2.25% on July 15, 2026 — its sixth straight hold — citing trade uncertainty and the situation in the Middle East. Its next decision is due September 2, per MTFX Group.

What's behind the move

HYPOTHESIS Several market outlets attribute the Canadian dollar's weakness to tariff uncertainty — including 25% tariffs on various product categories — combined with the interest-rate gap between the US and Canada, per MTFX Group. A TradingView article described the pair at a 56-month high (roughly four and a half years) earlier in the month, though this site could not independently verify that specific figure. This is the reading circulating this week, not a fact verified by this site.

What this does NOT mean

HYPOTHESIS Bank forecasts cited by MTFX Group point to the pair potentially falling toward 1.3490 by October before rising again toward 1.4310 by December — a wide range that is a reminder that no current level, on its own, predicts where the rate goes over the coming weeks.

Sources consulted on August 31, 2026: Xe.com: USD to CAD, MTFX Group: Canadian Dollar Forecast August 2026.

Educational notice: this article is analysis based on public data, may contain errors, and is not financial advice. It is not a recommendation to buy or sell. The decision and the risk are always the reader's own.