Forex - Big Jump In Canadian Dollars As Oil Prices Rise

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Oil has been rising steadily, even hitting a record $80 per barrel today, and that’s creating all kinds of effects in the currency exchange markets. The Canadian dollar rose to new highs today on the news of soaring oil.

Figures released this afternoon from the US Energy Information Administration showed US crude oil stocks fell by 7.1 mln barrels in the week to Sept 7. This was far more than analysts’ forecasts for a smaller fall of 3 mln barrels and propelled oil prices to record highs.

The Canadian dollar is typically highly sensitive to movements in the oil price, though it has also benefited from broad weakness in the US dollar, which has hit new all-time lows against the euro today.

At 3.04 pm GMT, the Canadian dollar was trading at 1.0382 per US dollar, just off an earlier high of 1.0361 cad, its highest level since July 25.

According to Canadian officials, the Canadian economy is now operating above its’ potential.

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