Spot Rate

Date % Change in Exchange Rate USA Inflation Canada Inflation

(USD/CAD)
30-Sep-13 1.0342 -0.62% 2.15% 1.07%
31-Oct-13 1.0363 0.20% 2.19% 0.65%
29-Nov-13 1.0486 1.19% 2.17% 0.90%
31-Dec-13 1.0639 1.46% 2.16% 1.24%
31-Jan-14 1.094 2.83% 2.23% 1.48%
28-Feb-14 1.1054 1.04% 2.16% 1.14%
31-Mar-14 1.1107 0.48% 2.16% 1.55%
30-Apr-14 1.0992 -1.04% 2.17% 2.04%
30-May-14 1.0894 -0.89% 2.19% 2.28%
30-Jun-14 1.083 -0.59% 2.23% 2.36%
31-Jul-14 1.0739 -0.84% 2.26% 2.11%
29-Aug-14 1.0926 1.74% 2.2% 2.11%
30-Sep-14 1.1011 0.78% 2.07% 2.03%
31-Oct-14 1.1212 1.83% 1.92% 2.36%
28-Nov-14 1.1325 1.01% 1.88% 1.95%
31-Dec-14 1.1532 1.83% 1.7% 1.47%
30-Jan-15 1.2122 5.12% 1.61% 0.97%
27-Feb-15 1.2499 3.11% 1.72% 1.05%
31-Mar-15 1.2618 0.95% 1.76% 1.20%
30-Apr-15 1.2337 -2.23% 1.86% 0.80%
29-May-15 1.2176 -1.31% 1.87% 0.87%
30-Jun-15 1.2365 1.55% 1.86% 1.03%
31-Jul-15 1.2863 4.03% 1.82% 1.27%
31-Aug-15 1.3147 2.21% 1.61% 1.27%
30-Sep-15 1.3266 0.91% 1.52% 1.03%
30-Oct-15 1.3072 -1.46% 1.5% 1.03%
30-Nov-15 1.3279 1.58% 1.57% 1.36%
31-Dec-15 1.3713 3.27% 1.51% 1.61%
29-Jan-16 1.4208 3.61% 1.42% 2.01%
29-Feb-16 1.3797 -2.89% 1.31% 1.36%
31-Mar-16 1.3226 -4.14% 1.55% 1.27%
29-Apr-16 1.2818 -3.08% 1.62% 1.66%
31-May-16 1.2945 0.99% 1.6% 1.50%
30-Jun-16 1.2894 -0.39% 1.47% 1.49%
29-Jul-16 1.3052 1.23% 1.46% 1.26%
31-Aug-16 1.2998 -0.41% 1.47% 1.10%
30-Sep-16 1.3108 0.85% 1.51% 1.34%
31-Oct-16 1.3251 1.09% 1.66% 1.49%
30-Nov-16 1.3434 1.38% 1.82% 1.18%
30-Dec-16 1.3339 -0.71% 1.93% 1.50%
31-Jan-17 1.3183 -1.17% 2.01% 2.13%
28-Feb-17 1.3109 -0.56% 2.02% 2.05%
31-Mar-17 1.3387 2.12% 1.99% 1.56%
28-Apr-17 1.3437 0.37% 1.91% 1.64%
31-May-17 1.3606 1.26% 1.83% 1.32%
30-Jun-17 1.3295 -2.29% 1.73% 1.01%
 31-Jul-17 1.269 -4.55% 1.77% 1.16%
31-Aug-17 1.2608 -0.65% 1.78% 1.40%
29-Sep-17 1.2279 -2.61% 1.83% 1.55%
31-Oct-17 1.2607 2.67% 1.86% 1.39%
30-Nov-17 1.2773 1.32% 1.85% 2.10%
29-Dec-17 1.2769 -0.03% 1.9% 1.87%
31-Jan-18 1.2429 -2.66% 2.04% 1.70%
28-Feb-18 1.2588 1.28% 2.1% 2.16%
30-Mar-18 1.2933 2.74% 2.09% 2.31%
30-Apr-18 1.2732 -1.55% 2.13% 2.22%
31-May-18 1.2866 1.05% 2.14% 2.22%
29-Jun-18 1.3125 2.01% 2.12% 2.45%
31-Jul-18 1.3133 0.06% 2.12% 2.99%
31-Aug-18 1.3042 -0.69% 2.1% 2.84%
28-Sep-18 1.3034 -0.06% 2.12% 2.22%
31-Oct-18 1.3004 -0.23% 2.11% 2.44%
30-Nov-18 1.3205 1.55% 2.01% 1.68%
31-Dec-18 1.3436 1.75% 1.81% 1.99%
31-Jan-19 1.33 -1.01% 1.79% 1.44%
28-Feb-19 1.3209 -0.68% 1.88% 1.51%
29-Mar-19 1.3371 1.23% 1.91% 1.88%
30-Apr-19 1.3378 0.05% 1.94% 2.03%
31-May-19 1.346 0.61% 1.83% 2.40%
28-Jun-19 1.3289 -1.27% 1.7% 2.02%
31-Jul-19 1.3105 -1.38% 1.75% 2.01%
30-Aug-19 1.3273 1.28% 1.59% 1.94%
30-Sep-19 1.3241 -0.24% 1.59% 1.87%
31-Oct-19 1.3189 -0.39% 1.56% 1.86%
29-Nov-19 1.3237 0.36% 1.64% 2.17%
31-Dec-19 1.3169 -0.51% 1.72% 2.25%
31-Jan-20 1.3089 -0.61% 1.72% 2.40%
28-Feb-20 1.3286 1.51% 1.62% 2.16%
31-Mar-20 1.396 5.07% 0.99% 0.89%
30-Apr-20 1.4048 0.63% 1.1% -0.22%
29-May-20 1.3972 -0.54% 1.12% -0.37%
30-Jun-20 1.3552 -3.01% 1.27% 0.66%
31-Jul-20 1.3497 -0.41% 1.46% 0.15%
31-Aug-20 1.3229 -1.99% 1.66% 0.15%
30-Sep-20 1.323 0.01% 1.66% 0.51%
30-Oct-20 1.3218 -0.09% 1.7% 0.66%
30-Nov-20 1.3073 -1.10% 1.71% 0.95%
31-Dec-20 1.2809 -2.02% 1.92% 0.73%
29-Jan-21 1.2725 -0.66% 2.08% 1.02%
26-Feb-21 1.2696 -0.23% 2.18% 1.09%
31-Mar-21 1.2569 -1.00% 2.28% 2.20%
30-Apr-21 1.2494 -0.60% 2.35% 3.39%
31-May-21 1.2125 -2.95% 2.47% 3.60%
30-Jun-21 1.222 0.78% 2.34% 3.06%
 30-Jul-21 1.253 2.54% 2.33% 3.72%
31-Aug-21 1.2599 0.55% 2.35% 4.09%
30-Sep-21 1.2671 0.57% 2.34% 4.38%
29-Oct-21 1.2434 -1.87% 2.53% 4.65%
30-Nov-21 1.2567 1.07% 2.62% 4.72%
31-Dec-21 1.28 1.85% 2.46% 4.80%
31-Jan-22 1.2622 -1.39% 2.45% 5.14%
28-Feb-22 1.2711 0.71% 2.46% 5.69%
31-Mar-22 1.266 -0.40% 2.85% 6.66%
29-Apr-22 1.2628 -0.25% 2.88% 6.77%
31-May-22 1.2859 1.83% 2.69% 7.73%
30-Jun-22 1.2804 -0.43% 2.62% 8.13%
29-Jul-22 1.2936 1.03% 2.36% 7.59%
31-Aug-22 1.2917 -0.15% 2.51% 7.01%
30-Sep-22 1.3339 3.27% 2.38% 6.86%
31-Oct-22 1.3689 2.62% 2.39% 6.88%
30-Nov-22 1.3457 -1.69% 2.37% 6.80%
30-Dec-22 1.3585 0.95% 2.26% 6.32%
31-Jan-23 1.3422 -1.20% 2.24% 5.92%
28-Feb-23 1.3454 0.24% 2.33% 5.25%
31-Mar-23 1.3683 1.70% 2.3% 4.30%
28-Apr-23 1.3484 -1.45% 2.27% 4.41%
31-May-23 1.3517 0.24% 2.21% 3.36%
30-Jun-23 1.3286 -1.71% 2.2% 2.81%
31-Jul-23 1.3211 -0.56% 2.3% 3.27%
31-Aug-23 1.3478 2.02% 2.34% 4.00%
Inflation Differential
(Ih-If)
Monthly Spot Rate and Inflation data of USD and CAD between
1.08%
1.54%
1.27%
0.92%
0.75%
1.02%
0.61%
0.13%
-0.09%
-0.13%
0.15%
0.09%
0.04%
-0.44%
-0.07%
0.23%
0.64%
0.67%
0.56%
1.06%
1.00%
0.83%
0.55%
0.34%
0.49%
0.47%
0.21%
-0.10%
-0.59%
-0.05%
0.28%
-0.04%
0.10%
-0.02%
0.20%
0.37%
0.17%
0.17%
0.64%
0.43%
-0.12%
-0.03%
0.43%
0.27%
0.51%
0.72%
 0.61%
0.38%
0.28%
0.47%
-0.25%
0.03%
0.34%
-0.06%
-0.22%
-0.09%
-0.08%
-0.33%
-0.87%
-0.74%
-0.10%
-0.33%
0.33%
-0.18%
0.35%
0.37%
0.03%
-0.09%
-0.57%
-0.32%
-0.26%
-0.35%
-0.28%
-0.30%
-0.53%
-0.53%
-0.68%
-0.54%
0.10%
1.32%
1.49%
0.61%
1.31%
1.51%
1.15%
1.04%
0.76%
1.19%
1.06%
1.09%
0.08%
-1.04%
-1.13%
-0.72%
-1.39%
-1.74%
-2.04%
-2.12%
-2.10%
-2.34%
-2.69%
-3.23%
-3.81%
-3.89%
-5.04%
-5.51%
-5.23%
-4.50%
-4.48%
-4.49%
-4.43%
-4.06%
-3.68%
-2.92%
-2.00%
-2.14%
-1.15%
-0.61%
-0.97%
-1.66%
D and CAD between 2013 to 2023
 Year % Change in Exchange Rate Inflation Differential (Ih-If) PPP Line
30-Sep-13 -0.62% 1.08% x y
31-Oct-13 0.20% 1.54% -0.045 -0.045
29-Nov-13 1.19% 1.27% 0 0
31-Dec-13 1.46% 0.92% 0.045 0.045
31-Jan-14 2.83% 0.75%
28-Feb-14 1.04% 1.02%
31-Mar-14 0.48% 0.61%
30-Apr-14 -1.04% 0.13%

Inflation Differential (Ih-If)

30-May-14 -0.89% -0.09%
30-Jun-14 -0.59% -0.13%
31-Jul-14 -0.84% 0.15% -6.00% -4.00%
29-Aug-14 1.74% 0.09%
30-Sep-14 0.78% 0.04%
31-Oct-14 1.83% -0.44%
28-Nov-14 1.01% -0.07%
31-Dec-14 1.83% 0.23%
30-Jan-15 5.12% 0.64%
27-Feb-15 3.11% 0.67%
31-Mar-15 0.95% 0.56%
30-Apr-15 -2.23% 1.06%
%C
29-May-15 -1.31% 1.00%
30-Jun-15 1.55% 0.83%
31-Jul-15 4.03% 0.55%
31-Aug-15 2.21% 0.34%
30-Sep-15 0.91% 0.49%
30-Oct-15 -1.46% 0.47%
30-Nov-15 1.58% 0.21%
31-Dec-15 3.27% -0.10%
29-Jan-16 3.61% -0.59%
29-Feb-16 -2.89% -0.05%
31-Mar-16 -4.14% 0.28%
29-Apr-16 -3.08% -0.04%
31-May-16 0.99% 0.10%
30-Jun-16 -0.39% -0.02%
29-Jul-16 1.23% 0.20%
31-Aug-16 -0.41% 0.37%
30-Sep-16 0.85% 0.17%
31-Oct-16 1.09% 0.17%
30-Nov-16 1.38% 0.64%
30-Dec-16 -0.71% 0.43%
31-Jan-17 -1.17% -0.12%
28-Feb-17 -0.56% -0.03%
31-Mar-17 2.12% 0.43%
28-Apr-17 0.37% 0.27%
31-May-17 1.26% 0.51%
30-Jun-17 -2.29% 0.72%
31-Jul-17 -4.55% 0.61%
31-Aug-17 -0.65% 0.38%
29-Sep-17 -2.61% 0.28%
31-Oct-17 2.67% 0.47%
30-Nov-17 1.32% -0.25%
29-Dec-17 -0.03% 0.03%
31-Jan-18 -2.66% 0.34%
28-Feb-18 1.28% -0.06%
30-Mar-18 2.74% -0.22%
30-Apr-18 -1.55% -0.09%
31-May-18 1.05% -0.08%
29-Jun-18 2.01% -0.33%
31-Jul-18 0.06% -0.87%
31-Aug-18 -0.69% -0.74%
28-Sep-18 -0.06% -0.10%
31-Oct-18 -0.23% -0.33%
30-Nov-18 1.55% 0.33%
31-Dec-18 1.75% -0.18%
31-Jan-19 -1.01% 0.35%
28-Feb-19 -0.68% 0.37%
29-Mar-19 1.23% 0.03%
30-Apr-19 0.05% -0.09%
31-May-19 0.61% -0.57%
28-Jun-19 -1.27% -0.32%
31-Jul-19 -1.38% -0.26%
30-Aug-19 1.28% -0.35%
30-Sep-19 -0.24% -0.28%
31-Oct-19 -0.39% -0.30%
29-Nov-19 0.36% -0.53%
31-Dec-19 -0.51% -0.53%
31-Jan-20 -0.61% -0.68%
28-Feb-20 1.51% -0.54%
31-Mar-20 5.07% 0.10%
30-Apr-20 0.63% 1.32%
29-May-20 -0.54% 1.49%
30-Jun-20 -3.01% 0.61%
31-Jul-20 -0.41% 1.31%
31-Aug-20 -1.99% 1.51%
30-Sep-20 0.01% 1.15%
30-Oct-20 -0.09% 1.04%
30-Nov-20 -1.10% 0.76%
31-Dec-20 -2.02% 1.19%
29-Jan-21 -0.66% 1.06%
26-Feb-21 -0.23% 1.09%
31-Mar-21 -1.00% 0.08%
30-Apr-21 -0.60% -1.04%
31-May-21 -2.95% -1.13%
30-Jun-21 0.78% -0.72%
30-Jul-21 2.54% -1.39%
31-Aug-21 0.55% -1.74%
30-Sep-21 0.57% -2.04%
29-Oct-21 -1.87% -2.12%
30-Nov-21 1.07% -2.10%
31-Dec-21 1.85% -2.34%
31-Jan-22 -1.39% -2.69%
28-Feb-22 0.71% -3.23%
31-Mar-22 -0.40% -3.81%
29-Apr-22 -0.25% -3.89%
31-May-22 1.83% -5.04%
30-Jun-22 -0.43% -5.51%
29-Jul-22 1.03% -5.23%
31-Aug-22 -0.15% -4.50%
30-Sep-22 3.27% -4.48%
31-Oct-22 2.62% -4.49%
30-Nov-22 -1.69% -4.43%
30-Dec-22 0.95% -4.06%
31-Jan-23 -1.20% -3.68%
28-Feb-23 0.24% -2.92%
31-Mar-23 1.70% -2.00%
28-Apr-23 -1.45% -2.14%
31-May-23 0.24% -1.15%
30-Jun-23 -1.71% -0.61%
31-Jul-23 -0.56% -0.97%
31-Aug-23 2.02% -1.66%
 Purchasing Power Parity
8.00%

6.00%

4.00%

2.00%

0.00%
6.00% -4.00% -2.00% 0.00% 2.00% 4.00% 6.00%

-2.00%

-4.00%

-6.00%

-8.00%

% Change in the Foreign Currency's Exchange Rate

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.0761259773
R Square 0.0057951644
Adjusted R Square -0.0026303003
Standard Error 0.0175263278
Observations 120

ANOVA
df SS MS F Significance F
Regression 1 0.00021127775 0.0002112777 0.6878154051 0.4085830007
Residual 118 0.03624631552 0.0003071722
Total 119 0.03645759327

Coefficients Standard Error t Stat P-value Lower 95%

Intercept 0.0019190305 0.00166747316 1.1508614341 0.2521160117 -0.0013830203
Inflation Differential -0.0840140444 0.10130151556 -0.8293463722 0.4085830007 -0.2846186245
 Interpretation:
The intercept's p-value being greater than 0.05 implies that
the slope is equal to 0. However, the coefficient is not equal
to 1. Thus, the null hypothesis is rejected. This implies that
PPP does not hold for our dataset.

Upper 95% Lower 95.0% Upper 95.0%

0.0052210814 -0.0013830203 0.0052210814 Cannot be rejected
0.1165905356 -0.2846186245 0.1165905356 Cannot be rejected
Date Spot Rate (USD/CAD) % Change in Exchange Rate Interest Rate (USA)
9/1/2013 1.0342 0.08%
10/1/2013 1.0363 0.20% 0.09%
11/1/2013 1.0486 1.19% 0.08%
12/1/2013 1.0639 1.46% 0.09%
1/1/2014 1.094 2.83% 0.07%
2/1/2014 1.1054 1.04% 0.07%
3/1/2014 1.1107 0.48% 0.08%
4/1/2014 1.0992 -1.04% 0.09%
5/1/2014 1.0894 -0.89% 0.09%
6/1/2014 1.083 -0.59% 0.1%
7/1/2014 1.0739 -0.84% 0.09%
8/1/2014 1.0926 1.74% 0.09%
9/1/2014 1.1011 0.78% 0.09%
10/1/2014 1.1212 1.83% 0.09%
11/1/2014 1.1325 1.01% 0.09%
12/1/2014 1.1532 1.83% 0.12%
1/1/2015 1.2122 5.12% 0.11%
2/1/2015 1.2499 3.11% 0.11%
3/1/2015 1.2618 0.95% 0.11%
4/1/2015 1.2337 -2.23% 0.12%
5/1/2015 1.2176 -1.31% 0.12%
6/1/2015 1.2365 1.55% 0.13%
7/1/2015 1.2863 4.03% 0.13%
8/1/2015 1.3147 2.21% 0.14%
9/1/2015 1.3266 0.91% 0.14%
10/1/2015 1.3072 -1.46% 0.12%
11/1/2015 1.3279 1.58% 0.12%
12/1/2015 1.3713 3.27% 0.24%
1/1/2016 1.4208 3.61% 0.34%
2/1/2016 1.3797 -2.89% 0.38%
3/1/2016 1.3226 -4.14% 0.36%
4/1/2016 1.2818 -3.08% 0.37%
5/1/2016 1.2945 0.99% 0.37%
6/1/2016 1.2894 -0.39% 0.38%
7/1/2016 1.3052 1.23% 0.39%
8/1/2016 1.2998 -0.41% 0.4%
9/1/2016 1.3108 0.85% 0.4%
10/1/2016 1.3251 1.09% 0.4%
11/1/2016 1.3434 1.38% 0.41%
12/1/2016 1.3339 -0.71% 0.54%
1/1/2017 1.3183 -1.17% 0.65%
2/1/2017 1.3109 -0.56% 0.66%
3/1/2017 1.3387 2.12% 0.79%
4/1/2017 1.3437 0.37% 0.9%
5/1/2017 1.3606 1.26% 0.91%
6/1/2017 1.3295 -2.29% 1.04%
 7/1/2017 1.269 -4.55% 1.15%
8/1/2017 1.2608 -0.65% 1.16%
9/1/2017 1.2279 -2.61% 1.15%
10/1/2017 1.2607 2.67% 1.15%
11/1/2017 1.2773 1.32% 1.16%
12/1/2017 1.2769 -0.03% 1.3%
1/1/2018 1.2429 -2.66% 1.41%
2/1/2018 1.2588 1.28% 1.42%
3/1/2018 1.2933 2.74% 1.51%
4/1/2018 1.2732 -1.55% 1.69%
5/1/2018 1.2866 1.05% 1.7%
6/1/2018 1.3125 2.01% 1.82%
7/1/2018 1.3133 0.06% 1.91%
8/1/2018 1.3042 -0.69% 1.91%
9/1/2018 1.3034 -0.06% 1.95%
10/1/2018 1.3004 -0.23% 2.19%
11/1/2018 1.3205 1.55% 2.2%
12/1/2018 1.3436 1.75% 2.27%
1/1/2019 1.33 -1.01% 2.4%
2/1/2019 1.3209 -0.68% 2.4%
3/1/2019 1.3371 1.23% 2.41%
4/1/2019 1.3378 0.05% 2.42%
5/1/2019 1.346 0.61% 2.39%
6/1/2019 1.3289 -1.27% 2.38%
7/1/2019 1.3105 -1.38% 2.4%
8/1/2019 1.3273 1.28% 2.13%
9/1/2019 1.3241 -0.24% 2.04%
10/1/2019 1.3189 -0.39% 1.83%
11/1/2019 1.3237 0.36% 1.55%
12/1/2019 1.3169 -0.51% 1.55%
1/1/2020 1.3089 -0.61% 1.55%
2/1/2020 1.3286 1.51% 1.58%
3/1/2020 1.396 5.07% 0.65%
4/1/2020 1.4048 0.63% 0.05%
5/1/2020 1.3972 -0.54% 0.05%
6/1/2020 1.3552 -3.01% 0.08%
7/1/2020 1.3497 -0.41% 0.09%
8/1/2020 1.3229 -1.99% 0.1%
9/1/2020 1.323 0.01% 0.09%
10/1/2020 1.3218 -0.09% 0.09%
11/1/2020 1.3073 -1.10% 0.09%
12/1/2020 1.2809 -2.02% 0.09%
1/1/2021 1.2725 -0.66% 0.09%
2/1/2021 1.2696 -0.23% 0.08%
3/1/2021 1.2569 -1.00% 0.07%
4/1/2021 1.2494 -0.60% 0.07%
5/1/2021 1.2125 -2.95% 0.06%
6/1/2021 1.222 0.78% 0.08%
 7/1/2021 1.253 2.54% 0.1%
8/1/2021 1.2599 0.55% 0.09%
9/1/2021 1.2671 0.57% 0.08%
10/1/2021 1.2434 -1.87% 0.08%
11/1/2021 1.2567 1.07% 0.08%
12/1/2021 1.28 1.85% 0.08%
1/1/2022 1.2622 -1.39% 0.08%
2/1/2022 1.2711 0.71% 0.08%
3/1/2022 1.266 -0.40% 0.2%
4/1/2022 1.2628 -0.25% 0.33%
5/1/2022 1.2859 1.83% 0.77%
6/1/2022 1.2804 -0.43% 1.21%
7/1/2022 1.2936 1.03% 1.68%
8/1/2022 1.2917 -0.15% 2.33%
9/1/2022 1.3339 3.27% 2.56%
10/1/2022 1.3689 2.62% 3.08%
11/1/2022 1.3457 -1.69% 3.78%
12/1/2022 1.3585 0.95% 4.1%
1/1/2023 1.3422 -1.20% 4.33%
2/1/2023 1.3454 0.24% 4.57%
3/1/2023 1.3683 1.70% 4.65%
4/1/2023 1.3484 -1.45% 4.83%
5/1/2023 1.3517 0.24% 5.06%
6/1/2023 1.3286 -1.71% 5.08%
7/1/2023 1.3211 -0.56% 5.12%
8/1/2023 1.3478 2.02% 5.33%
9/1/2023 1.3531 0.39% 5.33%
Interest Rate Interest Rate Differential
(Canada) (Ih-If)
Monthly Spot Rate and Interest Rate data o
0.99% -0.91%
0.92% -0.83%
0.94% -0.86%
0.89% -0.80%
0.89% -0.82%
0.87% -0.80%
0.88% -0.80%
0.94% -0.85%
0.92% -0.83%
0.93% -0.83%
0.95% -0.86%
0.94% -0.85%
0.92% -0.83%
0.88% -0.79%
0.9% -0.81%
0.91% -0.79%
0.59% -0.48%
0.47% -0.36%
0.53% -0.42%
0.65% -0.53%
0.67% -0.55%
0.58% -0.45%
0.43% -0.30%
0.38% -0.24%
0.41% -0.27%
0.39% -0.27%
0.44% -0.32%
0.5% -0.26%
0.48% -0.14%
0.46% -0.08%
0.46% -0.10%
0.54% -0.17%
0.55% -0.18%
0.49% -0.11%
0.5% -0.11%
0.51% -0.11%
0.53% -0.13%
0.5% -0.10%
0.51% -0.10%
0.47% 0.07%
0.46% 0.19%
0.48% 0.18%
0.51% 0.28%
0.55% 0.35%
0.45% 0.46%
0.47% 0.57%
0.63% 0.52%
0.7% 0.46%
0.82% 0.33%
0.88% 0.27%
0.87% 0.29%
0.84% 0.46%
0.95% 0.46%
1.13% 0.29%
1.1% 0.41%
1.08% 0.61%
1.17% 0.53%
1.11% 0.71%
0.99% 0.92%
1.33% 0.58%
1.38% 0.57%
1.43% 0.76%
1.61% 0.59%
1.59% 0.68%
1.63% 0.77%
1.63% 0.77%
1.62% 0.79%
1.67% 0.75%
1.7% 0.69%
1.63% 0.75%
1.62% 0.78%
1.65% 0.48%
1.61% 0.43%
1.63% 0.20%
1.68% -0.13%
1.68% -0.13%
1.65% -0.10%
1.65% -0.07%
1.14% -0.49%
0.16% -0.11%
0.2% -0.15%
0.16% -0.08%
0.16% -0.07%
0.16% -0.06%
0.14% -0.05%
0.13% -0.04%
0.1% -0.01%
0.1% -0.01%
0.04% 0.05%
0.07% 0.01%
0.09% -0.02%
0.07% 0.00%
0.06% 0.00%
0.1% -0.02%
0.16% -0.06%
0.18% -0.09%
0.19% -0.11%
0.14% -0.06%
0.19% -0.11%
0.05% 0.03%
0.1% -0.02%
0.13% -0.05%
0.38% -0.18%
0.57% -0.24%
0.92% -0.15%
1.33% -0.12%
1.59% 0.09%
2.31% 0.02%
3.04% -0.48%
3.19% -0.11%
3.56% 0.22%
4.04% 0.06%
4.14% 0.19%
4.38% 0.19%
4.41% 0.24%
4.27% 0.56%
4.28% 0.78%
4.66% 0.42%
4.72% 0.40%
4.87% 0.46%
4.92% 0.41%
Interest Rate data of USD and CAD between 2013 to 2023
Date % Change in Exchange Rate Interest Rate Differential (Ih-If) IFE Line
10/1/2013 0.20% -0.83% x
11/1/2013 1.19% -0.86% -0.045
12/1/2013 1.46% -0.80% 0
1/1/2014 2.83% -0.82% 0.045
2/1/2014 1.04% -0.80%
3/1/2014 0.48% -0.80%
4/1/2014 -1.04% -0.85%

Interest Rate Differential (Ih - If)

5/1/2014 -0.89% -0.83%
6/1/2014 -0.59% -0.83%
7/1/2014 -0.84% -0.86%
8/1/2014 1.74% -0.85%
9/1/2014 0.78% -0.83% -6.00%

10/1/2014 1.83% -0.79%

11/1/2014 1.01% -0.81%
12/1/2014 1.83% -0.79%
1/1/2015 5.12% -0.48%
2/1/2015 3.11% -0.36%
3/1/2015 0.95% -0.42%
4/1/2015 -2.23% -0.53%
5/1/2015 -1.31% -0.55%
6/1/2015 1.55% -0.45%
7/1/2015 4.03% -0.30%
8/1/2015 2.21% -0.24%
9/1/2015 0.91% -0.27%
10/1/2015 -1.46% -0.27%
11/1/2015 1.58% -0.32%
12/1/2015 3.27% -0.26%
1/1/2016 3.61% -0.14%
2/1/2016 -2.89% -0.08%
3/1/2016 -4.14% -0.10%
4/1/2016 -3.08% -0.17%
5/1/2016 0.99% -0.18%
6/1/2016 -0.39% -0.11%
7/1/2016 1.23% -0.11%
8/1/2016 -0.41% -0.11%
9/1/2016 0.85% -0.13%
10/1/2016 1.09% -0.10%
11/1/2016 1.38% -0.10%
12/1/2016 -0.71% 0.07%
1/1/2017 -1.17% 0.19%
2/1/2017 -0.56% 0.18%
3/1/2017 2.12% 0.28%
4/1/2017 0.37% 0.35%
5/1/2017 1.26% 0.46%
6/1/2017 -2.29% 0.57%
7/1/2017 -4.55% 0.52%
8/1/2017 -0.65% 0.46%
 9/1/2017 -2.61% 0.33%
10/1/2017 2.67% 0.27%
11/1/2017 1.32% 0.29%
12/1/2017 -0.03% 0.46%
1/1/2018 -2.66% 0.46%
2/1/2018 1.28% 0.29%
3/1/2018 2.74% 0.41%
4/1/2018 -1.55% 0.61%
5/1/2018 1.05% 0.53%
6/1/2018 2.01% 0.71%
7/1/2018 0.06% 0.92%
8/1/2018 -0.69% 0.58%
9/1/2018 -0.06% 0.57%
10/1/2018 -0.23% 0.76%
11/1/2018 1.55% 0.59%
12/1/2018 1.75% 0.68%
1/1/2019 -1.01% 0.77%
2/1/2019 -0.68% 0.77%
3/1/2019 1.23% 0.79%
4/1/2019 0.05% 0.75%
5/1/2019 0.61% 0.69%
6/1/2019 -1.27% 0.75%
7/1/2019 -1.38% 0.78%
8/1/2019 1.28% 0.48%
9/1/2019 -0.24% 0.43%
10/1/2019 -0.39% 0.20%
11/1/2019 0.36% -0.13%
12/1/2019 -0.51% -0.13%
1/1/2020 -0.61% -0.10%
2/1/2020 1.51% -0.07%
3/1/2020 5.07% -0.49%
4/1/2020 0.63% -0.11%
5/1/2020 -0.54% -0.15%
6/1/2020 -3.01% -0.08%
7/1/2020 -0.41% -0.07%
8/1/2020 -1.99% -0.06%
9/1/2020 0.01% -0.05%
10/1/2020 -0.09% -0.04%
11/1/2020 -1.10% -0.01%
12/1/2020 -2.02% -0.01%
1/1/2021 -0.66% 0.05%
2/1/2021 -0.23% 0.01%
3/1/2021 -1.00% -0.02%
4/1/2021 -0.60% 0.00%
5/1/2021 -2.95% 0.00%
6/1/2021 0.78% -0.02%
7/1/2021 2.54% -0.06%
8/1/2021 0.55% -0.09%
 9/1/2021 0.57% -0.11%
10/1/2021 -1.87% -0.06%
11/1/2021 1.07% -0.11%
12/1/2021 1.85% 0.03%
1/1/2022 -1.39% -0.02%
2/1/2022 0.71% -0.05%
3/1/2022 -0.40% -0.18%
4/1/2022 -0.25% -0.24%
5/1/2022 1.83% -0.15%
6/1/2022 -0.43% -0.12%
7/1/2022 1.03% 0.09%
8/1/2022 -0.15% 0.02%
9/1/2022 3.27% -0.48%
10/1/2022 2.62% -0.11%
11/1/2022 -1.69% 0.22%
12/1/2022 0.95% 0.06%
1/1/2023 -1.20% 0.19%
2/1/2023 0.24% 0.19%
3/1/2023 1.70% 0.24%
4/1/2023 -1.45% 0.56%
5/1/2023 0.24% 0.78%
6/1/2023 -1.71% 0.42%
7/1/2023 -0.56% 0.40%
8/1/2023 2.02% 0.46%
9/1/2023 0.39% 0.41%
 y International Fischer Effect (IFE)
-0.045
8.00%
0
0.045
6.00%

4.00%
Interest Rate Differential (Ih - If)

2.00%

0.00%
-6.00% -4.00% -2.00% 0.00% 2.00% 4.00% 6.00%

-2.00%

-4.00%

-6.00%

-8.00%

% Change in the Foreign Currency's Exchange Rate

6.00%
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.216660053
R Square 0.0469415786
Adjusted R Square 0.0388648123
Standard Error 0.0171430084
Observations 120

ANOVA
df SS MS F
Regression 1 0.001708025097 0.0017080251 5.8119273138
Residual 118 0.034678162773 0.0002938827
Total 119 0.03638618787

Coefficients Standard Error t Stat P-value

Intercept 0.0024364489 0.001565036971 1.5567996087 0.122196124
Interest Rate Differential (Ih-If) -0.8187716872 0.33962740706 -2.4107939177 0.0174609602
 Interpretation:
The intercept's p-value being greater than 0.05 implies that
the slope is equal to 0. However, the coefficient is not equal
to 1. Thus, the null hypothesis is rejected. This implies that
IFE does not hold for our dataset.

Significance F
0.0174609602

Lower 95% Upper 95% Lower 95.0% Upper 95.0%

-0.0006627503 0.0055356482 -0.0006627503 0.0055356482 Cannot be rejected
-1.4913264165 -0.1462169579 -1.4913264165 -0.1462169579 Rejected