You're standing in a shop in Windsor or maybe browsing a Canadian site from your couch in Buffalo, and you see something for $35. If you're using American cash or a U.S. credit card, you probably want to know exactly what that's going to cost you. Right now, on January 13, 2026, the mid-market exchange rate is hovering around 1.389.
Basically, that means 35 US dollars to canadian comes out to roughly $48.63 CAD.
But here’s the thing. That number? It's kind of a "perfect world" figure. If you go to a bank or use a currency kiosk at the airport, you aren't getting 1.389. You're getting whatever they decide to give you after they take their cut.
The Reality of Converting 35 US Dollars to Canadian
Most people think a currency conversion is just a quick multiplication on a calculator. It isn't. When you're looking at 35 US dollars to canadian, you have to account for the "spread." That's the difference between the wholesale price banks pay and the retail price they charge you.
If you use a standard credit card that has a foreign transaction fee, your $35 purchase won't just be $48.63 CAD. It might end up being closer to $50 CAD once the bank tacks on their 2.5% or 3% fee. Honestly, it’s a bit of a racket.
Where You Exchange Matters
- Big Banks: They usually give you a rate that’s about 3-4% away from the "real" mid-market rate.
- Airport Kiosks: Avoid these like the plague. They know you're desperate. You might end up paying $52 CAD for that $35 USD value.
- Fintech Apps: Companies like Wise or Revolut usually stay closest to that 1.389 rate, often within a few cents.
- Cash at the Border: Some retailers near the border will take USD at par (1:1), which is a terrible deal for you right now. You'd be losing nearly $13.
Why the Exchange Rate is Moving Right Now
Currency markets are twitchy. As of early 2026, we're seeing the Canadian dollar—often called the "loonie"—struggling a bit against the greenback. A big reason for this is the divergence in interest rates. The Bank of Canada has been trying to balance a cooling housing market with sticky inflation, while the U.S. Federal Reserve is keeping rates relatively high to prevent the economy from overheating.
Oil prices are also a massive factor. Canada is a huge net exporter of energy. When oil prices dip, the CAD usually follows. Currently, energy markets are seeing some volatility due to new supply chains coming online in South America, which hasn't done the loonie many favors.
Interestingly, back in January 2025, the rate was actually higher, closer to 1.44 CAD for every 1 USD. So, if you’re traveling now, you’re actually getting a slightly better deal than you would have a year ago. It’s all relative, right?
The "Hidden" Costs of Small Conversions
When you are only dealing with a small amount like 35 dollars, the fees matter more than the rate. If a service charges a $5 flat fee to exchange money, it doesn't matter if they give you a "great" rate—they've already eaten up a huge chunk of your cash.
For a $35 USD transaction, your best bet is almost always a credit card with no foreign transaction fees (like many travel-focused Visa Infinites or Mastercards). They use the network rate (Visa/Mastercard rate), which is usually very fair, and you skip the "convenience" fees that physical booths love to charge.
Buying Power Comparison
What does $48.63 CAD actually buy you in Canada compared to $35 USD in the States?
In a city like Toronto or Vancouver, $48 CAD might cover a decent lunch for two at a mid-range sit-down spot, maybe without drinks. In the U.S., $35 might get you the same thing. Because of higher sales taxes in most Canadian provinces (like the 13% HST in Ontario), that $48.63 disappears faster than you'd expect.
Moving Forward With Your Money
If you need to move exactly $35 USD into a Canadian account or spend it today, don't just look at the raw conversion.
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First, check your card's terms. Look specifically for "Foreign Transaction Fee." If it's not zero, consider using a different card. Second, if you're being asked by a card terminal if you want to pay in USD or CAD (this is called Dynamic Currency Conversion), always choose CAD. Let your own bank do the math; the merchant's bank will almost always rip you off with a terrible internal rate.
If you are planning to exchange larger sums later, keep an eye on the Bank of Canada's upcoming rate announcements. If they signal a rate hike, the loonie might jump, making your US dollars worth less in comparison. For now, enjoy the fact that your 35 bucks is worth nearly 50 in the Great White North.
To get the most out of your money, verify the current live rate on a site like Reuters or Bloomberg right before you swipe, and always opt for digital payments over physical cash exchanges to minimize the "tourist tax" on your currency.