The risk appetite improved, boosting the equities, today and the Canadian dollar benefited from this, though the rising oil prices perhaps contributed to the loonie’s strength even more.
The Dow Jones Industrial Average rose 0.2 percent through the day and 2.4 percent over the week. Crude oil futures advanced 0.9 percent to $77.45 per barrel on the New York Mercantile Exchange. The Canadian currency, which is often called the loonie because of the image of the waterfowl on the C$1 coin, reached its highest level in a month against the U.S. dollar today.
The composite leading index rose by 0.9% in May, mainly because of manufacturing components, proving that the Canada’s economy steadily grows. Considering that prices for crude oil, which is main Canada’s export, predicted to surge in a future, we can expect further strengthening of the loonie.
USD/CAD closed at 1.0212 after opening at 1.0276. EUR/CAD closed at 1.2636 after it opened at 1.2730. CAD/JPY closed at 88.83 up from its opening price of 88.50.
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