Loonie Gets Boost on Final Day of 2013

Loonie is finally getting a boost today, ending a rather lackluster year on a high note. Canadian dollar has seen its strength leak away over the course of 2013, and many believe that parity with the US dollar is gone for quite some time.

Canadian dollar started the year off at right around parity with the US dollar, but that has since changed. Volatile oil prices haven’t helped the loonie, but a lot of its problems have to do with its comparison to the greenback. Even as the rumors swirled about the Federal Reserve taper, the Bank of Canada kept its rates low. Many had hoped that the BoC would raise rates, but this never happened. The diverging monetary policies have been weighing on loonie.
Canadian economic issues are also weighing on the loonie. Concerns about a housing bubble remain a focus. Additionally, the economy overall in Canada is underperforming its peers. This is something of a comedown from when the Canadian economy outperformed its peers in the aftermath of the financial crisis.
But for the final day of 2013, Canadian dollar is getting a boost. Loonie is mostly higher, and that’s a situation that may not remain the same in the coming weeks.
At 15:45 GMT USD/CAD is down to 1.0624 from the open at 1.0640. EUR/CAD is down to 1.4646 from the open at 1.4682.

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