Canadian Dollar Rises as Oil Shows Strength

The Canadian dollar rose against the 3 other major currencies today, completely reversing the daily trend, as the oil and commodity markets become more attractive after the holidays.

Today the loonie (another name for the Canadian currency) is growing for the third day against the Japanese yen and the Euro and for the second day against the U.S. dollar. The Canada’s currency gained an additional momentum after the crude oil gained more than 1.3 percent in New York today.

The commodity economies that rely heavily on the export of the oil and some other raw supplies, such as metals, will experience an uprise in their currencies’ demand as the analysts believe that the oil bottom has been already reached. On the other hand, if the oil loses its bullish trend, the Canadian dollar will return to the levels significantly below its current rates.

USD/CAD declined from 1.2054 to 1.1916 as of 17:54 GMT today. CAD/JPY rose from 76.36 to 78.33 and EUR/CAD fell from 1.6736 to 1.6159 today.

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