While the United States dollar continues to rise, Canadian dollar is currently hitting a snag as it hits its lowest numbers for the past two months. This has quiet impacted the currency exchange Vancouver and can’t be avoided as the prices of oil started to decline. There is also the issue of uncertainty regarding politics in Italy which prompted many to protect their assets. On the other hand, investors are waiting for the decision to be made by the Bank of Canada with regards to the interest rate.
The Canadian dollar trading yesterday was a lower by 0.2 per cent and closed at $1.3014 compared to the United States dollar. The percentage is equal to an amount of $76.84. The currency is currently situated at the lowest number it has been since the 21st of March when it reached $1.3047.
According to FX Strategy’s head based in the North America, Bipan Rai, the move made by the Canadian dollar only goes to show how their tone conveys getting off the risk.
Investors turned to betting into safe-haven assets while there are issues prompted by politics right after Italy planted the seed of fear that euro might be entering another crisis soon. This in turn will increase the value of the Japanese currency and therefore will increase the value of the United States dollar which they have been consistently making for the past 10 months compared to euro.
One of the biggest exports of Canada is oil and the prices are currently declining due to pressure from countries like Russia and Saudi Arabia. These countries could produce more crude in the event that there is a shortage with the supply coming from Canada.
The price of crude oil from the U.S. is at $66.73 which is a lower by 1.7 per cent for every barrel. The losses suffered by the Canadian dollar came before the decision was announced by the Bank of Canada to have a rate hike. The central bank is hoping to ensure that the rates of the interest will remain consistent as precautions are taken by the consumers in debt. This will have some impact with currency exchange Vancouver and time can only tell whether the pace will remain the same or improve in the coming months.