Canadian Dollar Gains as Traders Seek Safety

The Canadian dollar gained today as the robust Canadian economy increases the appeal of the currency as the safe have, therefore drawing the investors, who seek the safety from the European debt crisis.

Canada, together with the U.S., has the fastest growing economy this year among the Group of Seven nations and the the lowest net debt-to-output ratio. The report last week, which showed the increasing employment and the stable unemployment rate, also added to the signs of Canada’s economic strength. The strong economy helps the loonie to rise even when the equities fall.

The analysts say that the Canadian currency performs rather well these days, considering the overall impact the European crisis has brought on the global markets. If the loonie will prove its reliability as the safe currency, it may even benefit from the troubles in Europe.

USD/CAD fell to 1.0516 as of 17:20 GMT today from its opening level of 1.0609. EUR/CAD traded near 1.2573. CAD/JPY rose to about 86.73 after it opened at 86.07.

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