The Canadian dollar rose against its U.S. counterpart by the end of this week, erasing the previous losses, after Jim Flaherty, the Canada’s Minister of Finance, said about the possible $8 billion capital inflow into Canada after it was designated by China as the country where the China’s financial institutions can make the investments.
The previous decline was caused by the report about the unexpected slowdown of the annual inflation rate to 1.4 percent in March from 1.6 percent the last month. The declining prices for the crude oil, the main nation’s export, were also weakening the Canadian currency. Later the crude rebounded on the data about the increase of the
The announcement of the China’s designation and the rising crude oil prices supported the evidences of the Loonie’s bullish trend, though some experts say that the currency’s appreciation may slow the economic growth. The analysts advise âshortingâ the U.S. dollar against its Canadian counterpart.
USD/CAD closed at 0.9990 after opening at 1.0149 and reaching its weekly low level of 0.9929. EUR/CAD closed at 1.3359 after opening at 1.3680.
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