Rising Stocks & Oil Prices Drive Loonie Up

The Canadian dollar rose against its U.S. counterpart for a second day and gained versus other major currencies today after the crude oil prices and the stocks advanced, signaling about the widening economic recovery and improving the investors’ risk sentiment.
The Loonie, as the Canadian currency nicknamed, is tied to the commodity prices, especially the prices for the crude oil as it’s the biggest nation’s export. The signs of the improving global economic environment encouraged the risk appetite of the investors and boosted the Loonie.
Mark Carney, the Governor of the Bank of Canada, stated that the necessity for the extraordinary monetary policy “is passing”, supporting the expectations for the increase of the interest rates. He said in the statement for his Senate testimony:

Going forward, nothing is pre-ordained. The extent and timing of any additional withdrawal of monetary stimulus will depend on the outlook for economic activity and inflation.

USD/CAD reached 1.0037 as of 18:00 GMT today after opening at 1.0091. EUR/CAD traded at about 1.3299 after it opened at 1.3331.

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