The Canadian dollar stabilized against the US dollar Monday, and remained firmer against all other major counterparts following last week’s surge, with higher oil prices rendering further support.
Since January, the loonie reached its sturdiest level Friday after better than projected domestic data and a more positive tone from the Bank of Canada lowered any bet another interest rate hike would surface.
Crude price climbed after a decline in stockpiles at the delivery point for US crude. It rose 1.09% to $56.35 a barrel, while Brent crude was still at $63.45 a barrel.
The currency, for the most part, has had a firm rally “based off of some of the inflation data and comments from the Bank of Canada,” said Rahim Madhavji, President at Knightsbridge Foreign Exchange.
The loonie ended at C$1.2230 per greenback or 81.77 US cents, from Friday’s C$1.2228 or 81.78 US cents.
Specifically, the currency strengthened earlier following BOC Governor Stephen Poloz emphasized his view January’s sudden rate reduction seemed to have been enough insurance to buffer the economy against slumping crude prices.
The material has been provided by InstaForex Company – www.instaforex.com