RELIABLE SOURCE FOR CANADIAN CURRENCY EXCHANGE RATE
In 2003, there was one question posted on a website about the Canadian to American dollar exchange rate. The asker mentioned about the Canadian dollar gaining against the American dollar because of its recent fall. The questioner was wondering how the Canadian exchange rate fare against the Euro as well as against the other Asian Currencies especially the Japanese Yen and the South Korean Won.
In addition, the asker wanted to know specific sites that can provide historical currency info, especially the Canadian to US dollar exchange rate, which is readily available.
Fortunately, Mike Mofatt, a lecturer and at the same time an economist from the University of Western Ontario was able to provide sufficient answers related to the US to Canadian dollar exchange rate for the questioner.
The Pacific Exchange Rate Service
Mike mentioned that it is very difficult to obtain reliable information about free (Canadian) currency exchange rate on the internet. He added that the only excellent and reliable resource that he knows that provides excellent data on the Canadian rate of exchange is the Pacific Exchange Rate Service Website maintained by the University of British Columbia.
The website is intended to support for academic research and teaching in the area of exchange rate economics. The Pacific Exchange Rate Service website provides access to historic and current daily (e.g. Canadian) exchange rates through an online database wherein when accessed, the data can be plotted. It also provides a list of all currencies of the world including the Canadian US exchange rate.
The Pacific Exchange Rate Service is aimed to become a repository of historic exchange rates including Canadian money exchange rates for the academic community such as economists and researchers. The exchange rates are posted on a daily basis so that researchers and economists will find it very easy to convert any local currency into the Canadian dollar or the US dollar. It is maintained and supported by the Sauder School of Business at the University of Columbia in Vancouver, Canada.
Tools and Information form the Pacific Exchange Rate Service
The site provides you all kinds of exchange rate data (e.g. Canadian US Dollar exchange rate) including daily, weekly, or monthly data comparing against any major currency to one or more other currencies in the world. Since it also provides historical data, you can choose a time period you want to study and you can also save the data as a hypertext table, comma-separated spreadsheet or just plain text table.
To obtain a sophisticated analysis of the Canadian dollar, the exchange rate service provides it in the daily analysis section of the site. The section itself provides a daily updated analysis of the Canadian exchange rate against the six world currencies which are the British Pound (GPB), the Euro (EUR), the Japanese Yen (JPY), Mexican Peso (MXP), Swiss Franc (CHF), and the US dollar (USD).
Dissecting the Daily Analysis Section
The daily analysis section of the site is divided into four tables, namely,
1) the current position
2) appreciation in percent
3) volatility
4) comovements
The Current Position Table
Under table “Current Position”, the most important column there is the Index column. It actually measures the how close the current Canadian exchange rate is to the highest and lowest exchange rate across the last twelve months. A value of “0” means that the Canadian dollar exchange rate is trading at its twelve-month low while a value of “100” means that the Canadian exchange rate is trading at its twelve-month high.
The Appreciation in Percent Table
For the Appreciation in Percent, this refers to the appreciation of the Canadian exchange rate against the other six foreign currencies. A positive value means that there is appreciation while a negative value represents the depreciation. There is also another index column in the table. This is the change index which is the value of the Canadian dollar exchange rate is relative to its value a year ago which is set to 100 at that time.
The Volatility Table
The volatility table tells you if the Canadian dollar exchange rates are rapidly fluctuating or stable. The volatility index column shows whether the Canadian exchange rate is becoming less or more volatile. The index is actually a ratio of the thirty day volatility measure against the one year volatility measure multiplied by 100. Hence, if an index is lower than 100, it means that the volatility decreases, and if the index is higher than 100, it indicates that there is an increase in the volatility of the Canadian rate of exchange.
The Comovement Table
A comovement measures the relationship of two exchange rates, such as the Canadian-to-American and Canadian-to-Mexican rates. Exchange rate that has a correlation of 1 indicates that if the Canadian rate of exchange appreciates against one currency, it will also appreciate against another. If the correlation is -1, then it is just the opposite. This means that if we will have an appreciation of one rate, there is depreciation on the other rate.
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