The Canadian dollar rose in value after sinking to its lowest levels in over two weeks, largely due to rumors that banks will announce new fiscal measures in order to boost economic activity in the country. The dollar had previously fallen alongside the different debt crises in the European Union. The new speculation jump-started Canada’s currency to its highest one-day gain this month.
Some speculators are now buying more Canadian dollars in the hope of short selling them when the time comes. Current 10-year bonds are now fixed at yield of 1.705 percent, just a little below the 1.765 percent rate of previous bond offerings.
In contrast to the Canadian currency, the stock markets were largely unaffected. Oil prices also remained stable, hovering a little above $89 in US trading. This has caused some concern to speculators as stocks and oil usually moved with currency changes. Still, traders are cautiously watching the market for sudden changes.
In international markets, many investors are now leaving behind the Euro and Sterling currencies and moving to different American and Commonwealth dollar currencies. Like the Canadian dollar, these greenbacks are now rising over the Euro zone’s concerns of stagnant growth due to the financial concerns there.
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