The Canadian dollar’s rally extended today for the second straight day against the U.S. dollar and the Japanese yen and for the third consecutive day versus the euro as the equities gained and the prices for crude oil, the main nation’s export, increased, spurring the demand for the currencies tied to growth.
The Standard and Poorâs 500 Index rose by 1.1 percent. The expanding U.S. economic recovery drained the oil inventories, boosting the demand. July delivery for crude oil advanced by 3.8 percent. The Canadian currency considered the “growth currency” as it has tendency to follow the moves of stocks and commodities.
It seems that the risk appetite is returning to the markets. And the loonie, as the Canadian dollar commonly nicknamed, may profit from the trader’s willingness to risk.
USD/CAD traded near 1.0424 as of 18:08 GMT today after opening at 1.0472. EUR/CAD dropped to 1.2513 from its opening rate of 1.2536. CAD/JPY traded at 87.58.
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