Risk Demand Pushes Canadian Dollar to 3-Week High

The Canadian dollar – nicknamed the “loonie” – broke a three-week high against its U.S. counterpart as speculation drove commodity prices higher on a greater expectation of a U.S. recovery. About 75 percent of Canada’s exports find their way to the U.S. market and positive growth signs in the U.S. tends to mean higher export sales and a boost to the Canadian economy.

“Bernanke gave the market a little bit of calm and confidence, and obviously that’s carried over,” said Steve Butler, managing director of foreign-exchange trading at Bank of Nova Scotia’s Scotia Capital, in Toronto. “It looks like we’re going to get a good start to the week. It’s just a matter of time before we turn the corner.”

The Canadian currency advanced 0.5 percent to 97.68 cents per U.S. dollar at 8:09 a.m. in Toronto, from 98.13 cents on Aug. 26. It appreciated earlier today to 97.57 cents, the strongest level since Aug. 5. One Canadian dollar buys $1.0235.

Source: Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.