Loonie on a High

The Canadian currency has skyrocketed again to a three month high compared to the US dollar. Commonly known as the ‘Loonie’, the Canadian dollar is supported by the commodity prices that remain constant throughout. The Loonie went up to 97.61 cents US. Now, it is expected to reach at par with the US dollar during this year.

Post its fall to seventy seven cents US in March 2009, the Loonie has gone up by over twenty percent when compared to the US dollar. It almost touched the greenback when it reached ninety eight cents US in October. Most of the market analysts are predicting positive signs in the year ahead.

However, in between, this was to be brought to a stand still due to the dent caused in the Canadian manufacturing segment by the economic slow down.

The economy of Canada mainly consists of various commodities and other crude form along with its exports. With more investors coming in and with the rise in the prices of various commodities, the greener pastures are yet to come.

Though, it has to be remembered that there are other currencies in line to compete as well. These include the Australian dollar and so on.

On the other hand, there was a fall in the energy stocks which led to a downfall in the oil prices. This was at the Toronto Stock Exchange which happens to be the largest energy market. Here, more than four hundred companies come to trade. The Toronto Stock Exchange which is expected to go beyond the twelve thousand mark has now fallen to 49.18 points and ended at 11,804.38. Although, a new leaf has turned, it is still a long run to reach 15,000 points.

All in all, it is important to see that the market has risen up by over thirty five percent.

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