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.
Ã¢â‚¬Å“Bernanke gave the market a little bit of calm and confidence, and obviously thatÃ¢â‚¬â„¢s carried over,Ã¢â‚¬Â said Steve Butler, managing director of foreign-exchange trading at Bank of Nova ScotiaÃ¢â‚¬â„¢s Scotia Capital, in Toronto. Ã¢â‚¬Å“It looks like weÃ¢â‚¬â„¢re going to get a good start to the week. ItÃ¢â‚¬â„¢s just a matter of time before we turn the corner.Ã¢â‚¬Â
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.
This article 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 Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.