Surging commodity prices push loonie to three and a half year high
Posted Apr 6, 2011 12:01 pm.
This article is more than 5 years old.
The Canadian dollar is trading around $ 1.04 US.
Rising commodity prices are getting most of the credit for giving the loonie more loft.
TD Bank group economist Francis Fong says there are a number of other factors that are also making our dollar more valuable against it’s American counterpart.
Fong says political unrest in North Africa and the Middle East is what’s fueling recent world oil prices gains.
He says our dollar is closely linked to commodity prices, but with our economy heating up that is also raising inflationary fears which could force the Bank of Canada to boost interest rates.
Fong tells 660News if commodity prices fall, the loonie will take a hit, but he says other economic factors will likely soften the blow.
He also points out because of economic problems in the US and in parts of Europe more and more money traders are eyeing Canada as a safe haven.
