The Canadian dollar this morning hit its highest point of the year, trading at 94.08 cents US.
That's the loonie's highest level against the U.S. dollar since Dec. 31, when the Canadian dollar entered the new year at 94.14 US.
The loonie's strength comes despite weakness in one of the factors that's been driving the dollar higher of late: The price of oil. The August crude contract was down 45 cents to $104.89 US a barrel in New York early Wednesday.
The Canadian dollar has gained more than three per cent since the start of June, Scotiabank currency analyst Camilla Sutton says, adding that it is due to a mixture of positive signs out of the Canadian economy coupled with a weakening of the U.S. dollar against all other currencies.
There could be more gains on the way, at least in the short term, she says.
"Every July over the last five years [the loonie] has undergone substantial strength, with an average monthly gain of 3.2 per cent," Sutton says. "It has also strengthened seven out of the last 10 July’s, with an average monthly gain of 1.4 per cent.The pattern is not predictive but does suggest that there could be underlying reasons why [the Canadian dollar] has tended to rally in July."
Canadian dollar rises above 94 cents to 2014 high - Business - CBC News
That's the loonie's highest level against the U.S. dollar since Dec. 31, when the Canadian dollar entered the new year at 94.14 US.
The loonie's strength comes despite weakness in one of the factors that's been driving the dollar higher of late: The price of oil. The August crude contract was down 45 cents to $104.89 US a barrel in New York early Wednesday.
The Canadian dollar has gained more than three per cent since the start of June, Scotiabank currency analyst Camilla Sutton says, adding that it is due to a mixture of positive signs out of the Canadian economy coupled with a weakening of the U.S. dollar against all other currencies.
There could be more gains on the way, at least in the short term, she says.
"Every July over the last five years [the loonie] has undergone substantial strength, with an average monthly gain of 3.2 per cent," Sutton says. "It has also strengthened seven out of the last 10 July’s, with an average monthly gain of 1.4 per cent.The pattern is not predictive but does suggest that there could be underlying reasons why [the Canadian dollar] has tended to rally in July."
Canadian dollar rises above 94 cents to 2014 high - Business - CBC News