The Canadian dollar surged today against the Japanese yen the most in 10 months after the nations of Group of Seven, including Canada agreed to intervene in order to weaken the Japanese currency. The Canadian currency fell versus the euro and fluctuated against the US dollar.
The G-7 nations agreed to help Japan to recover after the earthquake that happened on March 11. One of the measures to aid the country was the intervention as a strong currency could derail the recovery of Japan’s economy. The Bank of Canada confirmed that it sold the yen, but didn’t disclose the amount.
The Canadian currency, known also as the loonie, weakened after the Statistics Canada reported that the annual increase of the Bank of Canada’s core inflation index was 0.9 percent in February, following the 1.4 percent gain in January. That’s was the lowest rate in history. The loonie also declined as crude oil fell after Mussa Kussa, Libyaâs foreign minister, said that the government is ceasing all military action and will begin to talk with the rebels.
CAD/JPY traded at 81.76 as of 20:57 GMT today after it opened at 80.23 and jumped to the intraday high of 83.49, rising as much as 4.3 percent, the biggest intraday gains since May. USD/CAD traded at 0.9848 following the drop from 0.9853 to 0.9804. EUR/CAD rose from 1.3813 to 1.3967.
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