On Wednesday, the Canadian dollar reached its highest level since 2015. Even with the pandemic putting pressure on the global economy, the loonie is managing to float right under 83 cents to the U.S. dollar.
Reasons for the loonie increasing in price is likely due to surging prices in commodities. Commodities like lumber, global oil prices, wheat, and copper are exports that Canada has an abundance of. Canada’s copper exports have recently hit nine-year highs contributing to this economic growth.
The price of the loonie is also very dependent on the United States. Whenever the U.S. Federal Reserve decides to raise its rates, the Canadian dollar will be affected. For now, Stephen Poloz, previous Bank of Canada Governor, told CTV News “This is better for the economy”.
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