Loonie Continues to Rise as US Dollar Falls

By Bizclik Editor


The Canadian Dollar rose to new heights this morning grazing a rate of $1.05 US. Happening for the first time since November 2007, strong inflation, signs of global economy recovery and high oil prices are propelling this rise.

Early this morning the loonie traded at $1.0501 pushing the US dollar to a lower rate of $0.9514. Higher oil prices are affecting both dollar’s trade values as oil prices rose to $110 USD per barrel.

“The USD should weaken further as the combination of US monetary and fiscal policy weighs heavily on the outlook,” said Camilla Sutton, Chief Currency Strategist at Scotia Capital, in a statement

SEE RELATED STORIES FROM THE WDM CONTENT NETWORK: Click here to read the latest edition of Business Review Canada

The Canadian Dollar, on the other hand, is currently benefiting from the USD decline.

“The single most important development today is that the USD is broadly lower and CAD is benefitting on the back of this. Yesterday’s stronger than expected inflation print and the subsequent re‐pricing of the outlook for the Bank of Canada interest path has also helped, as did strong leading indicators. However, as the top chart highlights interest rate spreads have been an important driver, but in terms of correlations, commodities are proving the most important factor for the CAD,” said Sutton.

A fall of the US dollar is speculated to potentially affect the US’s recovering economy. This may affect the Loonie detrimentally. “On the crosses the CAD is likely to underperform as the Canadian economy will benefit from high oil prices, but will prove vulnerable to any dampening of the US economy,” continued Sutton.

Featured Articles

DEI done right: Brook Sims, COO, MAC Diversity Recruiters

Passionate about helping others find their voice, diversity leader and COO Brook Sims talks powerful leadership, diverse teams and being a change agent

Q&A: China’s ecommerce innovator Jeff Li, CEO of Shoplazza

Named in Fortune China’s 40 under 40 for 2022, former Baidu head Jeff Li is the entrepreneurial founder and CEO of ecommerce platform Shoplazza

How hybrid work is revolutionising the physical office

As hybrid work models roll out worldwide, the purpose of the office is changing with collaboration, connection and networking taking centre stage

Trailblazer: Shanique Bonelli-Moore, DEI chief at Clorox


Dean Forbes – the Forterro CEO aiming for the moon

Leadership & Strategy

Why becoming a B Corp is good for business