Tags: Canadian | Dollar | U.S. | parity

Canadian Dollar Likely to Soar Above U.S. Currency

Tuesday, 16 Mar 2010 03:58 PM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The Canadian dollar will probably soar above parity with the U.S. dollar for the first time in a year, according to Canadian Imperial Bank of Canada (CIBC).

The loonie, as Canada’s currency is affectionately called, reportedly will benefit from several factors, say experts at the country’s fifth largest bank.

Those factors include rising interest rates; strong demand for Canadian commodities such as oil, minerals and fertilizers; reviving capital markets in Canada: and sovereign debt woes elsewhere, according to AFP news service.

The Canadian dollar already has gained a few U.S. cents in recent weeks, as investors expect The Bank of Canada to raise rates ahead of the Federal Reserve, probably by mid-year.

The Canadian dollar currently trades around 98.60 U.S. cents.

If the Bank of Canada indeed beats the Fed to the punch in raising rates, the loonie could reach US$1.02 by September before falling back to 97 U.S. cents by year-end, CIBC chief economist Avery Shenfeld told AFP.

In addition, "If the capital markets finally get an appetite for M&A (mergers and acquisitions), then Canada could be one of the first places to see the benefit of foreign inflows," CIBC analyst Zafar Bhatti wrote in a report.

A strong Canadian jobs report for February led others to forecast Canadian dollar strength too.

“It certainly dovetails with the idea that the Canadian dollar goes to parity,” Jack Spitz, managing director of foreign exchange at National Bank of Canada, told Bloomberg.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Nevada Rancher Is Latest Obama Target

Thursday, 17 Apr 2014 11:40 AM

Increasingly, Americans fear their government. They fear its power, its might, and its ability to ruin their lives. . . .

South Is Key for GOP to Capture Senate

Thursday, 10 Apr 2014 11:26 AM

In recent years, the Republican Party has increasingly been described as a shrinking entity dominated by angry white mal . . .

Most Political Consultants Are Useless

Thursday, 27 Mar 2014 10:14 AM

For those who follow politicians, political pundits and the media, it seems as we head into the more intense portion of  . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved