Canadian dollar fell at 1.04919 in Currency Trading

Canadian dollar fell at 1.04919 in Currency Trading

Canada’s dollar fell at 1.04919 on Tuesday, after the Canadian central bank advised that a strong currency was undermining economic recovery and suggested it will not follow Australia´s policy makers in raising interest rates quickly. The Bank of Canada’s rough language surprised Currency Traders, stimulating them to reverse predictions about currency that would extend a double-digit rally to reach parity with the U.S. dollar. Remember that Canada is one of the most important commodities exporters, a depreciation of its currency will improve international competitiveness of Canadian products.

The U.S. dollar jumped back from a 14-month low against a basket of currencies in volatile trading on Tuesday as policymakers in Europe and Asia suggested that a decline in the U.S. currency will not contribute to stabilize the financial markets in the entire world. [more]

Standard and Poor’s Index also fell as weak U.S. inflation and housing data offset strong quarterly earnings, denting investor appetite to sell the low-yielding dollar in favor of higher-yielding currencies more closely correlated with economic recovery.