The Canadian Dollar Exchange Rate was in the region of 0.9978 against the US Dollar as of 10:11 am GMT
What do George Michael, Prince, Britney Spears and the Canadian Dollar have in common? Well, they’re all fans of a comeback.
After dropping to a month-low against the US Dollar on Tuesday the Canadian Dollar experienced a rebound, gaining for the first time in four days against its American counterpart.
Although yesterday’s ambiguous G-7 statements regarding exchange rates triggered ‘Loonie’ declines, due to volatility in the marketplace wearing on the currency, commodity developments caused upward momentum.
Crude oil is one of Canada’s main exports, and the commodity received a significant boost from an OPEC demand forecast. After crude oil futures gained 0.6 per cent the ‘Loonie’ broadly strengthened.
Another contributing factor to the Canadian Dollar’s rise is the fact that the last regulatory hurdle standing in the way of the takeover of a Canadian oil producer worth 15.1 billion dollars has been cleared. Yesterday Chinese company Cnooc Ltd was granted approval to acquire the US assets of Nexen Inc.
As one industry expert commented: ‘Cnooc’s takeover of Nexen cleared the last regulatory hurdle, so people are trying to judge what the impact of that will be. It should be in some form net buying of Canadian dollars. Unless you’re on the inside it’s hard to judge, but we know 25-30 percent of the equity is held in Canadian hands. What we do know is that more than likely it should be some form of Canadian-dollar positive.’
Meanwhile, a currency analyst with Forexlive.com asserted: ‘The oil story is something that should be on everyone’s screen, that spread and how it behaves, because it’s a billion-dollar difference every month in trade for Canada. It’s the difference between a trade deficit and a trade surplus.’
Even Bank of Canada governor Mark Carney’s continued insistence that slashing interest rates is no longer a key priority didn’t temper the ‘Loonie’s gains.
However, a senior currency strategist with Rabobank International did assert: ‘The Canadian Dollar is very much on the sidelines of the broader debates which are going around markets right now, which is the currency-war theme. Whether or not Canada can win back some ground, that’s definitely a potential, but not until the Bank of Canada drops its more dovish tone.’
Current Canadian Dollar Exchange Rates
The Canadian Dollar to Euro exchange rate is currently trading at 0.7398
The Canadian Dollar to Pound Sterling exchange rate is currently trading at 0.6373
The Canadian Dollar to US Dollar exchange rate is currently trading at 0.9978
The Canadian Dollar to Australian Dollar exchange rate is currently trading at 0.9649
The Canadian Dollar to New Zealand Dollar exchange rate is currently trading at 1.1948
The Canadian Dollar to Emirati Dirham exchange rate is currently trading at 3.6634
The Canadian Dollar to Swiss Franc is currently trading at 0.9149
The Canadian Dollar to Japanese Yen exchange rate is currently trading at 93.0680
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