Canadian Dollar Likely to Trump U.S. Currency

Friday, 12 Mar 2010 05:08 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, 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, the AFP news service reported.

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 at around 98.30 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
Please review Community Guidelines before posting a comment.
>> 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:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Obama Attends Wedding of Longtime Personal Chef

Saturday, 30 Aug 2014 20:16 PM

President Barack Obama set aside the pressures of the world's trouble spots on Saturday to assume the role of spectator  . . .

Bill Clinton to Speak at Miami Rally for Charlie Crist

Saturday, 30 Aug 2014 19:48 PM

Former President Bill Clinton will be the keynote speaker at a rally in Miami Friday for Democrat gubernatorial candidat . . .

Jerry Brown Furious Over Court Decision Banning Teacher Tenure

Saturday, 30 Aug 2014 08:02 AM

California will appeal a controversial court decision that overturned some job protections for public school teachers an . . .

Most Commented

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