Canadian Dollar Rose with Equities & Oil

The Canadian dollar rose today, erasing the previous losses against the U.S. dollar and the Japanese yen, on the speculations that the central bank will raise the interest rates and after the equities and crude oil gained.
The Standard & Poor’s 500 Index, with which the Canadian currency is strongly correlated, rose by 1.4 percent. July delivery for crude oil, the key Canada’s export, jumped as much as 2.1 percent to $76.70 per barrel. The Bank of Canada may raise the interest rates further, after it already raised them on June 1st.
Canada may become the first country among the Group of Seven nations with economy reaching the pre-recession levels of output. Such strong economic growth makes the nation’s currency very attractive to the investors.
USD/CAD traded at about 1.0257 as of 20:37 GMT today after it opened at 1.0336. CAD/JPY rose to 89.13 from the opening level of 88.56.

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