The Canadian dollar fell versus its U.S. counterpart after it have reached parity for the first time since July 2008 for a second straight day after the report that the Bank of Canada revealed its plans to increase the interest rate with a faster pace, but then erased its loses and is heading to parity again at present time.
Mark Carney, the Governor of the Bank of Canada, announced in the previous month his intention to increase the benchmark interest rate from a record low 0.25 percent by June 1st because the inflation was rising faster than expected. The Canadian currency looks strong over the long term, though, considering its history of gains against the greenback, as was proved when the loonie resumed its rally to parity.
USD/CAD traded at 1.0030 as of 19:00 GMT after opening at 1.0059 and rising to its highest level of 1.0104.
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