The exchange rate forecast for the Canadian Dollar (CAD) against the Chilean peso (CLP) is currently influenced by several key factors, including commodity prices, monetary policies, and recent political developments in Chile. As of late December 2025, CAD is trading at 662.1 CLP, which is notably 1.3% lower than its three-month average of 671 CLP. The currency has remained relatively stable within a range of 657.5 to 693.8 CLP, reflecting subdued volatility in recent weeks.
The loonie's performance is closely tied to fluctuations in oil prices, given that Canada is a major oil exporter. Recent data show that oil trades at approximately 60.89 USD, marking a 3.9% decrease from its three-month average of 63.35 USD, and an 18.8% volatile range from 59.04 to 70.13 USD. Analysts suggest that continued weakness in oil prices could exert downward pressure on the CAD, particularly with uncertainties surrounding the global demand for oil.
On the other hand, the Chilean Peso has shown some strength following the recent presidential election, where José Antonio Kast emerged victorious. This has sparked optimism in the market, leading to a 1% appreciation of the CLP against the USD. The anticipation of pro-business policies may bolster investor confidence in the Chilean economy in the coming months.
Monetary policy will play a crucial role for both currencies. The Bank of Canada has maintained its policy rate at 2.25%, while the Central Bank of Chile has held its rate steady at 5% in response to ongoing inflationary pressures. These interest rate differentials are significant as they influence capital flows and perceptions of economic stability.
Overall, the CAD-CLP exchange rate outlook is shaped by the interplay of commodity price movements, interest rate decisions, and political developments. Traders should remain alert to these dynamics, as they could lead to greater volatility in the coming weeks. Given the recent trends, close monitoring of oil prices and economic indicators from both Canada and Chile will be essential for those engaged in international transactions involving these currencies.
