Wednesday saw the value of the Canadian dollar drive to its top rate in more than one week against the world's reserve currency after the Bank of Canada noted again that it will slowly shore up monetary policy, Reuters reports.
Signals about the Canadian economic system growing stronger in the aftermath of the Great Recession also proved to be beneficial to the Canadian dollar. The central bank kept its overnight lending rate at 1 percent as it has been for more than two years.
FX strategy head Jeremy Stretch with CIBC World Markets in London told Reuters on Wednesday that much focus was on what the central bank would do when it convened on Tuesday. The loonie has been encouraged to bounce back, Stretch told the news source.
Other industry participants also believe in the gradually-growing Canadian dollar. The next year will see the loonie increase in value against the U.S. dollar, according to a poll of economists and currency strategists.
Conjecture about the government of China intervening to aid growth and development with the globe's second-largest economy also pushed up the value of the loonie on Wednesday, according to The Canadian Press.
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