The Canadian dollar rose today to the highest level in five months against the US dollar on the prediction the central banks across the world would cut their interest rates while the Canadian central bank keep the rates unchanged.
David Watt, senior currency strategist at Royal Bank of Canada, said:
Weâve got general aversion to the euro, the dollar and other
industrial-world currencies as investors are looking for countries with less structural impediments as more central banks signal further easing. Commodity countries are gaining, and Canadaâs economic strength provides a bullish backdrop.
Mark Carney, the Governor of the Bank of Canada, raised the interest rates on September 8th for the third time in a row. Last week he said that further increased “would need to be carefully considered”.
The Canadian currency was also boosted by crude oil, main Canada’s export. November futures for crude delivery went up 0.6 percent to $83.33 per barrel, the highest level since May 4th.
USD/CAD dropped from 1.0175 down to 1.0107 as of 17:46 GMT, following the slump to 1.0062, the lowest level since April 30th. EUR/CAD dropped to the intraday low of 1.3990 before rebounding to 1.4071.
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