The Canadian dollar is trading at its highest level against the greenback in more than a month, but the currency has depreciated against other major currencies after the Bank of Canada reduced its growth projections to 1.8% in the four quarters through June from 2.8%, reports Chris Fournier for Bloomberg.
“The positive reaction to the European deal is the overriding factor in the appreciation of all currencies against the U.S. dollar,” Jack Spitz, managing director of foreign exchange at National Bank of Canada, said. “U.S. dollar offers can from time to time spill off into Canadian-dollar offers given the North American trade. Moreover, the Bank of Canada and economic downgrades can’t be discounted.”
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Max Chen contributed to this article.