The Canadian dollar drove to its 90-day height on Wednesday against the world's reserve currency, propelled higher by the deal reached by U.S. political leaders regarding the fiscal cliff, Bloomberg reports.
Approved on New Year's Eve by U.S. political leaders, the deal spurred the Canadian dollar to sharply rise. The loonie also capitalized on gains to crude oil futures, the top export of the natural resources rich nation.
"In the short term, I think we'll see a lot of resistance at 98.25, so the U.S. dollar will find support at that level," senior corporate dealer Darren Richardson with CanadianForex in Toronto told Bloomberg on Wednesday. "We've got a lot of technical support there, previous highs from October, December was at 98.25 and that should hold in for today."
Wednesday saw the Canadian dollar achieve its largest intraday leap since mid-September.
Canada was at risk of slipping into an economic recession had U.S. leaders not finalized the pact about the automatic activation of $600 billion in tax hikes and spending cuts, according to Reuters.
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