The Canadian dollar rose today, climbing to the highest level in almost three months against its US counterpart and the Japanese yen, as poor economic data from the United States and the rally of crude oil prices played in favor of commodity currencies.
Futures for WTI crude oil gained 0.57 percent in New York today. The performance of the Canadian currency is strongly tied to moves of oil prices as crude is the biggest Canada’s export.
Yesterday’s policy meeting of the Canadian central bank turned out to be a rather bullish event for the loonie as well. The bank kept monetary policy unchanged and sent a message that was less dovish than economists had expected.
On top of all that, the weakness of the US dollar was giving strength to most other currencies, the Canadian dollar being one of them.
USD/CAD dropped from 1.2290 to 1.2200 as of 22:42 GMT, and its daily low of 1.2142 was the weakest level since January 21. CAD/JPY rallied from 96.90 to 97.52, touching the high of 97.90 — also the highest level since January 21. EUR/CAD was little changed at 1.3122.
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