Canadian Dollar Slips after Advancing Earlier
Canadian dollar is slipping right now, following an earlier advancement. Trading has been somewhat choppy for the loonie in recent days, and now the currency is back below parity with the US dollar, and slipping against other majors as well.
Earlier this week, the loonie slipped below parity on concerns about oil, as well as Hurricane Sandy. However, things seemed to turn around after manufacturers’ prices rose, and with US markets closed.
Canadian dollar also got a bit of a boost from the fact that the Swiss National Bank started buying more loonies. Indeed, loonies represent four per cent of foreign exchange reserves for Switzerland. As more and more central banks around the world diversify their foreign reserve holdings, the Canadian dollar is becoming an increasingly popular choice. It is a relatively stable currency, and Canada’s economy didn’t suffer as badly from the global financial meltdown.
However, even with the recent gains, loonie is slipping right now. The currency is down against the greenback again, back below parity, and is also down against the euro and the pound.
At 12:55 GMT USD/CAD is higher at 1.0009, up from the open at 0.9995. EUR/CAD is also higher, rising to 1.3021 from the open at 1.2956. GBP/CAD has gained ground, moving up to 1.6128 from the open at 1.6063.
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Earlier News About the Canadian Dollar:
- CAD Trades Below Parity with USD (2012-10-30)
- Hawkish Stance of BoC Does Not Prevent Weekly Losses of Loonie (2012-10-27)
- Loonie Suffers as Europe Hurts Market Sentiment (2012-10-26)
- Loonie Gains on Expectations of Higher Interest Rates (2012-10-25)
- Bank of Canada Remains Hawkish, Loonie Goes Higher (2012-10-23)