While many analysts fret over the US Federal Reserve and if or when they will cut interest rates, many tend to ignore the Canadian Dollar and its 4% rally this year. The Canadian Dollar is a commodity currency due to its heavy dependence on commodity exports. This is the reason why the rally this year is even more impressive as during a global economic slowdown, demand for commodities remains depressed which results in lower prices. Usually commodity currencies face selling pressure during economic slowdowns, but the Canadian Dollar has defied bearish pressures and carved out a bright spot.
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