The faltering U.S. dollar helped drive another big jump in the loonie Wednesday, sending it above US$1.10 in morning trading.
Indications that China may want to diversify its foreign currency stockpiles away from the U.S. greenback in part triggered the selloff.
But it's not just the decline of the American dollar that's pushing the loonie higher.
Near-record oil prices and strength in other Canadian commodities is giving the currency a boost, as well as solid economic conditions.
The rapid rise of the dollar has fuelled hopes that some consumer prices will drop but also raised alarms that the acceleration is unsustainable and could damage the economy.
Later in the morning the loonie pulled back a little from the $1.10 mark, but was still up 1.06 cents at 109.08 cents US.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment