The Canadian Dollar has strengthened for a second consecutive day against the Pound and edged above a seven-week low against its US relation after crude oil, the nation’s biggest export, climbed to its highest level since July on Tuesday.
The ‘Loonie’ is still feeling the benefits of yesterday’s oil price hike and could rise higher as the markets enter a period of volatility as concern builds over a possible military strike by the USA and its allies against Syria. The uncertainty saw crude oil gain by more than $3 a barrels as fears mount that any action in the region could further destabilise the Middle East and impact oil supplies.
The currency was also supported by comments made by John Murray, the deputy governor of the Bank of Canada who said that the eventual removal of the USA’s monetary stimulus measures will initially have a negative impact on the Canadian Dollar and would lead to higher interest rates, but ultimately it would prove to be a good thing for the Canadian economy.
He went on to say that a stronger US economy, combined with a weaker Canadian Dollar will more than compensate for the drag that higher interest rates would create and would provide support for commodity prices and increase demand for Canadian exports.
“Stronger external demand, coupled with downward pressure on our currency and support for commodity prices from a global economic recovery will provide the lift,” Murray said.
As tensions in the Middle East escalate the price of oil is likely to increase further over the coming days and is likely to offset the impacts of investors seeking safe havens.
Current Canadian Dollar (CAD) Exchange Rates:
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9522 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7121 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6146 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0677 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2282 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6269 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0501 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4042 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8141 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9365 <
(Correct as of 11:40 am GMT)
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