Exchange Rate Calculator

The exchange rate between the Hong Kong Dollar (HKD) and the Canadian Dollar (CAD) has experienced notable fluctuations over the past few months. This report provides an analysis of the recent trends, key influencing factors, and potential future outlooks for the HKD/CAD currency pair.

Recent Exchange Rate Trends

In the first half of 2025, the HKD/CAD exchange rate exhibited a downward trend. The highest rate was recorded on January 31, 2025, at 1 HKD equal to 0.1867 CAD. By June 16, 2025, the rate had declined to its lowest point of 0.1729 CAD per HKD. The average exchange rate during this period was approximately 0.1810 CAD per HKD. (exchange-rates.org)

This decline represents a depreciation of the Hong Kong Dollar relative to the Canadian Dollar by approximately 7.4% from its peak in January to its trough in June. The trend indicates a strengthening of the Canadian Dollar against the Hong Kong Dollar over this period.

Factors Influencing the Exchange Rate

Several factors have contributed to the observed movements in the HKD/CAD exchange rate:

1. Economic Indicators: Canada's economic performance, including GDP growth and employment rates, has been robust in early 2025, bolstering investor confidence in the CAD. Conversely, Hong Kong's economy faced challenges due to global trade tensions and internal political developments, impacting the HKD's value.

2. Interest Rate Differentials: The Bank of Canada maintained a relatively higher interest rate compared to the Hong Kong Monetary Authority during this period. Higher interest rates typically attract foreign capital, increasing demand for the currency and leading to appreciation.

3. Commodity Prices: Canada's economy is significantly influenced by commodity exports, particularly oil. An increase in global oil prices during this period enhanced Canada's trade balance, positively affecting the CAD.

4. Geopolitical Events: Political stability in Canada contrasted with uncertainties in Hong Kong, including ongoing protests and policy changes, which may have led investors to favor the CAD over the HKD.

Historical Context

Looking at the broader historical context, the HKD/CAD exchange rate has experienced fluctuations over the past few years. In 2024, the exchange rate ranged from a low of 0.1696 CAD per HKD on January 1 to a high of 0.1859 CAD on December 18, with an average rate of 0.1756 CAD. (exchange-rates.org) This indicates that while the HKD appreciated against the CAD in 2024, the trend reversed in the first half of 2025.

Future Outlook

Predicting future exchange rate movements involves considerable uncertainty due to the interplay of various economic, political, and social factors. However, several scenarios could influence the HKD/CAD exchange rate moving forward:

• Economic Recovery in Hong Kong: If Hong Kong's economy rebounds strongly, possibly through increased trade or policy reforms, the HKD could appreciate against the CAD.

• Monetary Policy Adjustments: Any changes in interest rates by the Bank of Canada or the Hong Kong Monetary Authority could alter the interest rate differential, impacting the exchange rate.

• Global Commodity Market Shifts: Fluctuations in commodity prices, especially oil, will continue to affect the CAD. A decline in oil prices could weaken the CAD relative to the HKD.

• Geopolitical Developments: Political events, trade agreements, or conflicts can rapidly influence investor sentiment and currency valuations.

Conclusion

The HKD/CAD exchange rate has shown a downward trend in the first half of 2025, influenced by economic performance, interest rate differentials, commodity prices, and geopolitical events. While historical data provides context, future movements will depend on a complex array of factors. Investors and businesses engaged in transactions involving these currencies should stay informed about ongoing economic indicators and policy decisions in both regions.