Loonie benefits from U.S. leaders' renewed budget efforts

Posted On: December 27, 2012

The monetary unit of Canada notched its top gains in 14 days against the U.S. dollar on Thursday amid a brighter outlook for U.S. political leaders settling negotiations for the fiscal cliff debacle, according to Bloomberg.

As the year comes to a close, the loonie has increased in value more than 3 percent against the U.S. dollar, pecking away at losses from last year against its southerly rival. The Canadian dollar benfited from President Barack Obama and his counterparts returning to Washington to discuss the fiscal cliff, which is set to kick in early next week sans an agreement prior to the end of this year.

"The optimism is that Obama ended his vacation early and came back to Washington," executive director Shane Enright with Canadian Imperial Bank of Commerce's CIBC World Markets unit told the news source on Thursday. "The market thinks they want to get something done by the 31st."

The Canadian dollar achieved its top gains against the greenback since December 12.

Reuters reports economists fear the U.S., host of the globe's largest economy, runs the risk of slipping into a double-dip recession without an agreement.

Category: Industry News

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