Monday, April 14, 2008

Canadian Dollar Rebounds

The Canadian dollar has been down for a couple of weeks, but rebounded strong today as exports increased and the stock index surged. The loonie gained against 14 of the 16 major currencies today, as gold and oil prices posted gains.

Jeff Rubin, chief economist at CIBC World Markets said the Canadian dollar should increase in strength against the U.S. dollar, probably rising to 95.2 cents per U.S. dollar this year.

He added concerning the U.S. economic downturn that "The energy- and resource-rich Canadian economy will manage to sit out this U.S. recession."

As he said, all this is related to the increasing and long-term demand for commodities, which should keep Canada's economy strong for the next couple decades at least.

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