Canada’s Dollar Gains on National Commodities

The Canadian dollar traded high versus its U.S. counterpart and several other key-currencies in foreign-exchange markets as its main commodity export, the crude oil, rose again allowing the loonie to start this week advancing.

The Canadian dollar, nicknamed the loonie for the image of the waterfowl on the C$1 coin, continued following last week’s trend and touched the highest level in seven weeks versus its U.S. counterpart, and also trading near the highest level in 2010 against the euro, as speculations suggested that the North American nation will raise its interest rates at some point this year, helping the appeal for the country’s currency to raise in foreign-exchange markets.

Morgan Stanley stated today that the Bank of Canada may hike its interest rates as soon as this June, since the Canadian economy is recovering well and allowing central bankers to lift stimulus, which is consequently making the loonie to rank among the best performers in foreign-exchange markets this month.

USD/CAD traded at 1.0288 as of 02:52 GMT from 1.0276 when markets opened yesterday.

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