Canadian Dollar Gains After 12-Week Dip

Chartdata

You need less than a minute read

·

Post on Oct 31, 2024

39 visitor like this post

Share

Loonie Leaps Back: Canadian Dollar Breaks 12-Week Losing Streak

It's been a rough couple of months for the Canadian dollar, with the loonie steadily losing ground against the US dollar for twelve straight weeks. But the tide seems to be turning! The Canadian dollar finally snapped its losing streak, gaining a bit of ground against its American counterpart.

So, what happened? Well, a few factors are playing into the loonie's recent rebound.

Higher Interest Rates, A Stronger Outlook

The Bank of Canada (BoC) recently raised interest rates again, which signaled that they're not done fighting inflation just yet. This move, combined with a relatively strong Canadian economy, made investors more optimistic about the loonie's future. The loonie's recent strength has some folks in the market excited.

A Little Help from the US

The US Federal Reserve, the equivalent of the BoC down south, also had a role to play in the loonie's climb. The Fed decided to hold off on raising interest rates, which made the US dollar a little less appealing to investors. With the US dollar losing some of its shine, the loonie got a chance to shine a little brighter.

What Happens Next?

While the Canadian dollar's recent bounce is a welcome sight, it's still too early to say if this is the start of a long-term trend. The loonie's path going forward will depend on a lot of factors, like the global economy, oil prices, and how the Bank of Canada continues to handle inflation. It'll be interesting to see how the loonie performs in the coming months!