The Canadian dollar is at its highest level in two months against the U.S. dollar as oil prices rise
and investor sentiment improves.
The Canadian dollar is trading at 1.2765 against the greenback, or $0.7834 U.S. cents. It’s the
highest level for the loonie since June 10 of this year.
The increase comes as oil prices trend higher. Brent crude oil, the international standard, is
back to trading near $100 U.S. per barrel. Canada is a major oil exporter, and the dollar is
sensitive to price moves in the energy commodity.
Still, the loonie has lagged other commodity-linked currencies such as the Australian and New
Zealand dollars, which have outpaced the Canadian currency this year.
At the same time, improving economic data south of the border has bolstered investor
sentiment.
The U.S. economy added more jobs than forecast in July, and there are signs that inflation has
now peaked, which could mean smaller-than-expected interest rate increases moving forward.
The S&P 500 stock index in the U.S. is at its highest level in three months having rallied since
early July.
