Driven by news about the U.S. unemployment rate touching its lowest level in three years, the climb of the loonie was tempered by Canadian job data that was not as strong, according to Reuters. The U.S. jobless rate presently is 8.3 percent, which helped reverse what began as a volatile performance of the loonie. The Canadian dollar is set to achieve a fourth consecutive week of gains against the world's reserve currency.
"We're looking to see how equities react, starting with U.S. equities, and then spill over affect to the other exchanges," foreign exchange sales managing director C.J. Gavsie with BMO Capital Markets told Reuters. "As that spills over, we're probably going to see demand for those local currencies.
He predicted the uplifting economic news from the U.S. is likely to drive the interest in Canadian dollars by foreign investors.
Should the loonie achieve a fourth consecutive week of gains against the U.S. dollar, the Canadian dollar would see its best rally since October of last year.
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