Canadian Dollar Raise National Bank Concerns
The Canadian dollar, which traded near the highest level since October last year as risk appetite is once again strong in commodities and equities markets, may influence negatively the North American national economic recovery, raising concerns about the loonie’s rally in the national central bank.
This year, the Bank of Canada already affirmed that a strong loonie could affect negatively the Canadian economy’s performance and that measures to stop a rally were not ruled out. This week, the Canadian currency managed to climb to an almost one-year high and rumors that the national central bank will halt the loonie’s rally started to appear, making it difficult to determine until which point the central bank will allow the Canadian dollar to grow further.
USD/CAD traded at 1.0643 as 18:03 GMT from 1.0679 yesterday.
If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.
September 17th, 2009 at 9:33 pm
Dear Bank of Canada. Please don’t wait another day. A strong loonie cuts into exporters’ profits – big time!
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September 18th, 2009 at 2:05 am
yes, i agree with you, not only for exporters its bad, but generally for all Canadians the current rates are unfavorable. I think probably measures can be expected when it touches 1.05 versus the greenback
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