Canadian dollar up over 80 cents against US dollar for first time in two years

By on July 25, 2017

An American $100 dollar bill (PHOTO BY 401(K) 2012, CC BY-SA 2.0)
An American $100 dollar bill (PHOTO BY 401(K) 2012, CC BY-SA 2.0)

TORONTO, July 25— The Canadian dollar climbed above 80 cents against US dollar Monday morning amid a weaker US currency for the first time since June 30, 2015.

The Canadian dollar rose because of strong data on manufacturing sales and a glowing assessment of the country’s economic outlook by the International Monetary Fund.

The Canadian currency has been rising since the middle of June when speculation that the Bank of Canada might raise interest rates started in earnest.

The central bank raised its key interest rate on July 12, its first rate increase since 2010.

Since bottoming out at the start of May, the Canadian dollar has gained nearly 10 percent through June and July due to a series of strong data points about the Canadian economy, including a strong job market, booming retail sales and factories ramping up production.

While the Canadian dollar has been doing some of the heavy lifting on its own, it’s also getting a boost from weakness in the US dollar. (Xinhua)