Loonie’s Rally Aided by Business Survey

The Canadian dollar pared its previous losses and resumed its rally to parity with its U.S. counterpart today after the business survey, performed by the Bank of Canada, signaled that the nation’s economy rebounds with the increasingly faster pace.

The survey, conducted by the Bank of Canada, showed that the prices are going to increase, the sales will be growing, the credit conditions are improving and the inflation, while somewhat rising, should remain within the Bank’s inflation-control range. The overall business survey confirms the continuing economic rebound in Canada and boosts the confidence in the strength of the loonie, as the nation’s currency nicknamed for the image of the aquatic bird on the C$1 coin.

The currency’s appreciation has been “orderly” and is reflecting the nation’s well-planned fiscal politics, according to the Canada’s Minister of Finance Jim Flaherty. Some analysts increase the forecast for the loonie to as high as 98 cents per U.S. dollar.

USD/CAD dropped to 1.0027 today as of 20:05 GMT from the opening rate of 1.0045. EUR/CAD traded near 1.3625 after opening at 1.3688. CAD/JPY traded at about 92.93.

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