Canadian Loonie Hits 80 Cents US
WINNIPEG, MB. – Don’t look now, but the Canadian dollar is rising. The loonie hit 80 cents US on Wednesday for the first time in two years.
Climbing nearly 10 percent since early May, the Canadian dollar has relied on a weaker American dollar, thus prompting the Bank of Canada to raise interest rates. Higher oil prices have also been a factor in the Canadian dollar’s climb.
Canada’s economic growth grew exponentially in May, with a reliance on the energy branch. Significant increases in conventional gas and oil extraction (3.2 percent), goods-producing industries (1.6 percent) and real gross domestic product (0.6 percent) highlighted the upwards shift of the loonie.
Although 80 cents to the dollar is a great rebound, many economists do not believe that Canada will maintain that sort of level, with a drop off coming as soon as the Bank of Canada decides to raise the interest rates one more time.
– Carter Brooks, MyToba News