A monetary unit that did not perform so strongly during the first eight months of 2011 has distinguished itself with investors who are averse from the sovereign debt scourge threatening the common currency of the European Union, Bloomberg reports.
Budget deficits and political gridlock in the U.S. capital has turned investors north from the greenback to the loonie of Canada. While the monetary unit has exceeded nine rival currencies, it still lags behind the greenback and the Japanese yen.
"Sentiment had turned so incredibly bearish on the U.S. economy that the potential for more positive surprises going forward will help the Canadian dollar," currency strategy head Camilla Sutton with Bank of Nova Scotia's Scotia Capital in Toronto told Bloomberg earlier this month.
The monetary unit is forecast to continue performing strongly against the U.S. dollar as the monetary unit's strengthening continues, according to Canada's six biggest banks. While inflation swells beyond the 2 percent target set by the Bank of Canada during the past 11 months, Canada's economic system is growing twice as quickly as other nations within the Group of Seven.
The Canadian Press reports traders' willingness to pursue more risky assets pushed up the value of the Canadian dollar on Monday.
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