This Currency Strengthening Is Unmatched! - Kakiforex | Forex markets for the smart money. This Currency Strengthening Is Unmatched! This Currency Strengthening Is Unmatched!

May 18, 2021

This Currency Strengthening Is Unmatched!

 Another recent record was set by the Canadian dollar after the currency hit a nearly six-year high, amid a weaker US dollar.

In the Asian session, the loonie traded 0.3% higher at 1.2040 against the US dollar, around the strongest level since 2015.

The greenback continued to weaken after being hit by disappointing U.S. retail sales data on Friday, causing it to trade lower than its main rivals.

Meanwhile, among one of the main factors contributing to the loonie dollar surge was the rise in world crude oil prices which rebounded near a two -month high.

Meanwhile, a different approach to monetary policy by the central bank also helped strengthen the Canadian dollar.

The US Federal Reserve (Fed) is sticking to their stance to remain with a very loose monetary policy as the economic recovery is seen to remain volatile and turbulent.

On the other hand, the Central Bank of Canada (BOC) has begun tightening its policy by reducing purchases of government bonds after seeing a strengthening in the recovery following strong economic data.