Monday saw the Canadian dollar lose value against the currencies of Australia and New Zealand as the probability of more international investment in China grew, according to Bloomberg.
The loonie fell against the majority of its 16 major rivals as Chinese stocks demonstrated their top gains in nearly one month after the China Securities Regulatory Commission chair said China might boost quotas to allow foreign investors to buy stocks and bonds from mainland China.
“With the market less concerned about risk in the first few weeks of the year, and the Aussie and the kiwi picking up more interest, more carry than the Canadian dollar, I think these other two currencies have been a bit more popular,” currency director Ken Dickson with Standard Life Investments in Edinburgh told the news source on Monday. “The interest-rate carry is just a little bit better. It’s slightly more favored in the near term.”
By the end of this year, the Canadian dollar is forecast to grow by at least 1 percent to amount to 98 percent against the U.S. dollar, according to the median of 40 economists surveyed by Bloomberg.
The Canadian Press reports the Canadian dollar’s losses were curbed by a report noting confidence within the nation’s internal business community is climbing.
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