Canadian Dollar Benefits on Iran-Iraq Oil Tensions

The Canadian currency is ranking among the best performers today in foreign-exchange markets as the crude oil and metallic commodities rose today, favoring Canadian stocks that benefited from tensions in the Middle East region.
After Iranian forces occupied an oil well on its neighboring country Iraq yesterday, the crude oil rates jumped significantly, providing support for the loonie to beat most of 16 main traded currencies in the past hours, as the commodity is one of the main nation’s exports specially to the U.S., helping the Canadian dollar to gain specially versus its U.S. counterpart. Research In Motion Ltd., a Canadian wireless devices company best known for producing the Blackberry, forecast higher than expected sales and profits, adding confidence to Canadian stocks that were partially responsible for the loonie’s performance today in currency markets.
The oil rates combined with RIB performance provided the perfect pattern for the loonie to rally, according to analysts. A higher loonie, especially versus its U.S. counterpart can be expected in 2010 if the oil and gold continue to have increases on their demand.
USD/CAD traded at 1.0681 as of 16:48 GMT from a previous rate of 1.0723 in the intraday comparison. AUD/CAD traded at 0.9466 from 0.9495.

If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *