Canadian Dollar Advances As Oil Rises
March 10, 2010 4:39 PM
An increase in the price of oil Wednesday helped propel the Canadian dollar to a slight gain on the U.S. dollar, although it did experience an intraday dip that may be an indicator for future performance.
As of 3:56 pm EST, the USD was valued at C$1.0261. Previously, the rate was 1:1.0269 this morning, and 1:1.0278 at the end of Monday. Oil also increased, up $0.60 to US$82.09 a barrel.
At one point, though, both the Canadian dollar and oil were up higher. The dip came as some speculated that China will release industrial production and retail sales figures that will be lower than predicted.
This news could be counteracted to a degree by a favorable jobs report. The Canadian job report, to be released on Friday, could reveal that Canada gained 35,000 jobs in February. This, along with other strong indicators for the Canadian economy, leads analysts to predict that the Canadian dollar will reach parity within the year, possibly within the next 3-4 months.
