Canadian dollar makes comeback, hits highest level since 2018 and could climb higher say economists

The Canadian dollar has come a long way in the past year and its trajectory places it among the strongest currencies of 2021.

It has been trading above 81 cents relative to the greenback for seven days in a row, and currency analysts say it could climb further in coming months.

The loonie had plunged to US$0.70 at the onset of the pandemic, when fearful investors piled into the perceived safety of the greenback – and commodity prices collapsed. But things are different now.

As the uneven global recovery begins — with Asian economies at the forefront and China leading the charge — demand for commodities has spiked along with prices for metals, energy and forestry products. This commodity boom has helped lift Canada’s currency to three-year highs.

Global’s Anne Gaviola reports.

MORE: https://globalnews.ca/news/7822618/canadian-dollar-highest-level-81-cents/

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