Canadian Dollar Nears Parity

The Canadian dollar recorded its fourth straight day of gains as it closes in on parity with its US counterpart. The “loonie” as the Canadian dollar is known, is being helped by an increased demand for commodities and a rising price for oil.

“We’re close to oil breaking out of its long-term trading range,” Sebastien Galy, a currency strategist at BNP Paribas SA in New York, said via e-mail. “The Fed is loosening while Canada is not. With central banks and real money diversifying ahead of the event, the Canadian dollar is well bid.”

Source: Bloomberg

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