Market Snapshot: Exchange Rates, Interest Rates and Markets

The page checks for new numbers every 2 minutes while it is open. Interactive charts, including the TSX · Pick any market

Why exchange rates matter on a tax return

Your return is filed in Canadian dollars. If you earn income, pay expenses, sell an investment or own property in another currency, each amount has to be converted to CAD. The CRA generally accepts the Bank of Canada rate for the day of the transaction. If you have many transactions through the year, such as rental income or foreign dividends, a reasonable average rate applied the same way every time is usually fine too. The Bank of Canada publishes yearly averages for this purpose.

The rates above are today’s indicative rates, so they are a good guide but not the rate to use for last year’s return. Keep a note of which rate you used and where it came from. The firm does these conversions for clients with foreign income or foreign property. See tax services or the tax season checklist.

What interest rates mean for borrowing

• The overnight rate target is the Bank of Canada’s policy rate. When it moves, banks usually move prime within days.
• Prime is the base for most variable-rate loans and lines of credit. A change in prime changes your monthly interest cost on those.
• Government of Canada bond yields are the benchmark behind fixed-rate loans. Fixed mortgage rates, for example, tend to follow the 5-year yield. The 2-year and 10-year show what the market expects for shorter and longer terms.

For a business owner or a practice, rates affect the cost of a line of credit, equipment financing and a commercial mortgage, and so they affect cash flow. The loan, mortgage and lease calculator and the 12-month cash flow forecast let you test a change before you talk to the bank.

How to read this page

• Delayed, not live. Bank of Canada figures update once a day. Fund and Bitcoin prices are the latest daily data and can be 15 minutes or more behind. The date under each number shows what it is.
• Funds are stand-ins. The S&P 500, Nasdaq 100, Dow, Russell 2000, gold and oil rows use US-listed funds, which track those markets but are not the index level or the spot price. The S&P/TSX Composite is not on this page; it is on the interactive charts page.
• If a source is down, the last good numbers stay on screen with their dates, or the row says “Not available”.
• Trend lines show roughly the last 30 daily readings (the prime rate and the overnight target change rarely, so their lines are mostly flat).

Market data is delayed, for information only, and not investment, tax or legal advice. Bank of Canada rates are indicative. Confirm anything important with your advisor or the source before you act. Contact the firm to talk about how rates or currency affect your situation.