The Canadian dollar pared losses against its US counterpart today as the rally of commodities outweighed the impact of the increasing concerns about the fiscal crisis in the European Union.
Today’s rally of commodities was very favorable for the loonie, as the Canadian currency is often nicknamed, because about half of Canada’s export revenue comes from raw materials. The Thomson Reuters/Jefferies CRB Index of raw materials rose 0.9 percent to 326.85 after it tumbled as much as 2.7 percent last week. Futures for crude oil, the key export of Canada, jumped 1.4 percent.
The Canadian dollar weakened versus 9 of 16 major currencies. Many analysts think that the loonie will perform well against the greenback and present weakness may be considered as a buying opportunity.
USD/CAD traded at 0.9928 as of 23:52 GMT today after it opened at 0.9929 and jumped to the intraday high of 0.9983. EUR/CAD traded at about 1.2861, rising from the opening price of 1.2802.
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