Investors and traders were keeping an eye on indications about the central bank of the Pacific Rim nation to determine whether it will implement additional easing measures. Japan’s economy is the globe’s third-largest and its aggressive easing as of late has not only pulled down the yen but also impacted foreign exchange markets as well. New Prime Minister Shinzo Abe, even before he was elected last month, made it clear how much he supports monetary easing.
“All in all, with all the drivers pointing to Canadian dollar strength, it doesn’t totally follow that the currency has weakened,” chief currency strategist Camilla Sutton with Scotiabank told Reuters on Monday.
The Japanese leader is attempting to spur Japan’s economy to pull out of a recession.
Political leaders in the U.S. are poised to take up discussions about the nation’s debt ceiling, which Reuters reports will impact the value of the Canadian dollar. The U.S. and Canada share a strong commerce and trade relationship.
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