Canadian Dollar Had Highest Monthly Gain in 60 Years

A combination of factors involving commodities price rebound, stocks rally and a less attractive U.S. dollar in global markets made the loonie to post the highest gains since the Korean War years.
Canada is one of the main suppliers of oil and a several number of commodities to the United States, and the recovery signs of the global economy, coming mainly from Asia and to a lesser extent from Europe, spurred demand for the main Canadian export products, causing the national currency to enter a strong uptrend. The new wave of optimism spread around world markets made riskier high-yield currencies to be more interesting for traders, which were previously holding their assets in safer positions as the greenback and the yen. This favorable scenario for Canada’s dollar made it rise 9.5 percent against the greenback since the beginning of May.
Analysts indicate that as concerns about the global slump ease, favoring the Canadian commodities market, fear rises regarding the future of the U.S. dollar, even if they may not be confirmed, the pressure is rising on the greenback. The general opinion bet in a strong Canadian dollar for the next months, as long as the demand for oil continues to mount.
USD/CAD closed the week at a rate of 1.0931 from a previous price of 1.1145. CAD/JPY rose to 87.32 from 86.85.

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