Canadian Dollar Rises vs. Greenback, Falls vs. Euro

The Canadian dollar fell today against the euro on the concern that China is going to slow its economic growth in order to battle the rising inflation. The Canadian currency fell also versus the US dollar but rebounded later.

The speculation that the China would perform the measures to cut the inflation and prevent the asset-bubble hurt the stocks and commodities markets. The MSCI World Index of equities in developed nations fluctuated, following the previous decline of 0.6 percent. December delivery for crude oil, Canada’s main export, fell as much as 1.5 percent to $80.59 per barrel. Today China ordered its banks to set aside larger reserves for the, draining cash from the financial system.

The optimism, caused by the talks about the Irish bailout, still supported the loonie against its US counterpart. The economists say that the Canadian currency remains very attractive, being tied to commodities, as commodities, particularly raw materials, are likely to continue to rally in the future.

USD/CAD closed at 1.0177 after it opened at 1.0188 and surged to the intraday high of 1.0232. EUR/CAD opened at 1.3899 and closed at 1.3928, following the jump to 1.3999.

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