The Canadian dollar advanced today against its U.S. counterpart and some other major currencies after the U.S. stocks rose more than estimated and as the investors demand for the currencies of the nations with the strong economies increased.
The Canadian currency has dropped earlier on the concern that Greece will require more funds to resolve its budget crisis than previously expected. The worries were somewhat suppressed as European Union and International Monetary Fund representatives plan to discuss with the Germany’s government its involvement in the aid to Greece. The Standard & Poorâs 500 Index rose 0.2 percent. The gains of the U.S. stocks boosted the Loonie and some other commodity currencies.
The analysts say that itâs the buying opportunity before the Bank of Canada raises the interest rates in June. The BoC plans to increase the rates as it’s “appropriate to begin to lessen the degree of monetary stimulus”, according to Mark Carney, the Governor of the Bank of Canada.
USD/CAD traded at 1.0124 as of 18:04 GMT today after it opened at 1.0171. CAD/JPY traded near 92.97 up from its opening level of 91.66.
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