The Canadian dollar rallied today, trading near the highest level since November against its US counterpart. The rally was fueled by the rise of crude oil prices as well as the general risk-positive market sentiment.
As many other currencies, the loonie fell against the greenback initially today but has bounced as of now as the US currency weakened. The strong gains of crude oil certainly contributed to the good performance of the Canadian dollar. The optimism of market participants was not hurting either.
The Bank of Canada is among central banks that are going to make a monetary policy decision this week. While analysts do not expect any changes this month, the strength of the currency may spur Canadian policy makers into action later if they consider the exchange rate excessively high.
USD/CAD was up from 1.3330 to 1.3377 intraday but retreated to 1.3265 as of 18:12 GMT today, hanging near the lowest level since November 19. EUR/CAD edged down from 1.4652 to 1.4613. CAD/JPY bounced from the daily low of 84.82 to 85.58 currently after opening at 85.41.
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