Canada’s Dollar Gains as Oil Prices Rises

The Canadian dollar gained today against its US counterpart as oil, the main nation’s export, advanced and on the speculation that the quantitative easing by the Federal Reserve would weaken the US currency. The loonie also rose versus the euro.
The anticipated announcement of the quantitative easing boosted the loonie, as the Canadian currency often nicknamed, against the greenback, while the advance of the oil prices bolstered the Canadian dollar versus some other currencies. December delivery for crude oil gained $1.52 to $82.95 per barrel on NYMEX.
The loonie fell against all other major currencies, except the greenback, since the end July on the speculation that the weaker economy in the US, the main Canada’s trading partner, would slow Canada’s economy. The Canadian currency posted the biggest losses among the Australian dollar, falling 7 percent in the past three months. Some analysts say that the downward trend of the loonie may reverse soon.
USD/CAD fell from 1.0183 to 1.0151 as of 21:23 GMT today. EUR/CAD dropped from the opening level of 1.4228 to 1.4105.

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