An exchange traded fund indexed to the movement of the Canadian loonie versus the U.S. dollar has climbed since early 2009 thanks to a weaker greenback.

However, CurrencyShares Canadian Dollar Trust (NYSEArca: FXC) has been heading south since the beginning of May along with commodities prices.

“Because of the Canadian economy’s heavy reliance on mineral wealth, its currency often rises and falls with commodities,” Morningstar wrote in a profile of the ETF.

“Since 1997, the Canadian dollar has maintained a strong correlation of about 50% with diversified commodities prices,” according to the report. “Because of the small population of Canada, trade with the United States also represents a sizable portion of economic demand and affects the currency’s movements.” [Canada ETFs And Political Change.]

CurrencyShares Canadian Dollar Trust

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