The Canadian dollar rose today, touching the highest level in a month against its US counterpart, as Canada’s inflation exceeded expectations. The currency also rallied to the strongest level in a year versus the euro and reached a new multi-year high against the Japanese yen.
Canadian Dollar CAD
Central Bank: Bank of Canada
Interest Rate: 1.00%
Public Debt to GDP Ratio, 2013: 86.3%
Trade Balance, 2013: -$12.3 bln.
Inflation, 2013: 1%
Major commodity exporter
Factors of Weakness
Dependence on United States as a major counterparty
The Canadian dollar is the official currency of Canada and is the 7th most traded currency in the world. It is often nicknamed “loonie” for the image of the aquatic bird on $C1 coin. The loonie was introduced as a currency used in Canada and all of its provinces in 1871, while the fixed exchange rate was abandoned in 1970. It is used by some central banks as a reserve currency. The performance of the currency depends on raw materials. Prices for crude oil are the most influential factor on the value of Canada’s dollar as oil is the most important export of Canada.
Canadian Dollar News Archive
November 21st, 2014 at 20:25
November 18th, 2014 at 11:21
Canadian dollar is trading mixed today, but is higher against the US dollar. With oil prices recovering a bit, and with the greenback pulling back a little after its recent run, the loonie is pressing its advantage.
November 13th, 2014 at 11:32
Canadian dollar is holding to gains made yesterday, following the announcement of positive employment news. Loonie is managing to hold its own a bit better now that oil prices seem to have stabilized somewhat, and with economic data remaining fairly positive.
November 10th, 2014 at 12:02
The Canadian dollar is gaining a little bit of ground today, following an announcement of a currency swap arrangement with China. Also helping the loonie today is the fact that oil prices are moving higher again.
November 07th, 2014 at 21:59
The Canadian dollar got a boost from extremely positive domestic employment report, which was released today. The loonie rose against the majority of its most-trading peers, reaching the highest level since 2008 versus the Japanese yen.
November 05th, 2014 at 11:58
Loonie is once again heading lower against the greenback, thanks in large part to oil prices. Even though the Canadian dollar is struggling against its US counterpart, though, it is gaining ground against European currencies. Concerns about what’s next in Europe, especially with sluggish Chinese data and policy statements coming tomorrow, are weighing on currencies across the pond.
November 04th, 2014 at 4:07
The Canadian dollar bounced against its US peer today following yesterday’s losses but extended decline against the euro and turned down versus the Japanese yen. Falling prices for crude oil and speculations that the Bank of Canada will not hike interest rates anytime soon were among the reasons for the currency’s weakness.
November 01st, 2014 at 4:15
The Canadian dollar ended Friday with losses against its US counterpart as Canada’s economy unexpectedly contracted in August. At the same time, the loonie managed to end the session flat versus the euro and to jump against the Japanese yen.
October 30th, 2014 at 10:28
Canadian dollar is trading mixed today, thanks to the latest comments from central bankers. Information from the Federal Reserve, as well as testimony from the Bank of Canada’s Stephen Poloz, are contributing to the loonie’s losses to the US dollar.
October 28th, 2014 at 10:49
Canadian dollar is heading a little bit higher today, gaining ground after weakening yesterday. A slight uptick in oil prices, along with better news in European and China, are helping the loonie a little bit. However, there are still challenges ahead for the Canadian dollar.