Futures Market News
Loonie keeps up with dollar as rate hike chatter continues
Aug 09, 2012 01:08 PM
Thursday saw the monetary unit of Canada minimally impacted against the world's reserve currency, according to Reuters.
Mark Carney, governor of the nation's central bank, has been noting since the early second quarter of this year that interest rates will climb. The loonie's value drove to its top rate in 90 days against the U.S. dollar from Wednesday to Thursday.
"The fact that we haven't seen the Canadian dollar getting down towards C$0.99 is more of a function of the broader risk dynamics supporting the U.S. side of the equation," foreign exchange strategy head Jeremy Stretch with CIBC in London told Reuters.
The U.S. dollar's strong performance on Thursday minimized the Canadian dollar's rise, prompted by a surprising fall in jobless claims in the U.S. Economists considered that economic data to signify slight improvements to the globe's largest economic system.
Canada's trade deficit with the rest of the world in June drove to Canada's equivalent of $1.82 billion, according to The Wall Street Journal. That represents the largest gap in nearly 24 months.
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