The Canadian Dollar has declined against the majority of its peers after Stephen Poloz was appointed as the next head of Canada’s Central Bank.
The choice, announced yesterday by Finance Minister Jim Flaherty took economists by surprise who had been betting that the Senior Deputy Governor Tiff Macklem would be the successor to Mark Carney.
“The government is well aware we are in an increasingly international economy and the fate of the Canadian economy depends to a great degree on what is happening overseas,” Jamie Price, director of fixed income at Macquarie Private Wealth in Toronto, said in an interview. “Choosing someone that focused the last decade plus of their career on business overseas seems to be an extension of what they have already done.”
The currency weakened after the announcement as investors were concerned that Poloz could adopt an easier monetary stimulus than the one that has been supported by Carney. They are also worried that Poloz could talk down the possibility of a future interest rate increase.
The ‘Loonie’ found support yesterday after data showed that Canada posted its first trade surplus in more than a year in March, breaking a long run of deficits as exporters shipped more energy and mineral products overseas.
“Canada cannot exhibit strong growth when the rest of the world is slowing down,” said Aubrey Basdeo, head of Canadian fixed-income at the Toronto unit of BlackRock Inc., the world’s biggest money manager. “The government wants some new thinking, not the same old same old.”
The currencies next movement will occur later on Thursday after the US, Canada’s biggest trading partner posts its latest jobs and factory orders data. A strong showing is likely to see the Canadian Dollar recover its losses.
Current Canadian Dollar (CAD) Exchange Rates
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9878
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7534
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6362
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9635
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1609
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5717
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0122
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3272
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8613
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0317 <
(Correct as if 11:20am GMT)
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