According to experts at a Canadian Imperial Bank of Canada(CIBC), the Canadian dollar or loonie is likely to be more valuable than the US dollar by the end of the year. The Canadian dollar could reach 1.02 versus the US dollar by September, then possibly dipping back down to 0.97 by the end of the year says Avery Shenfeld chief economist of CIBC.
The Bank of Canada has maintained its key lending rate at a historic low of 0.25 percent since April 2009 to help bolster a fragile economic recovery, but is widely expected to review its position mid-year. CIBC said other factors were also aligning to push up the value of Canada’s currency such as increased demand for oil, minerals and fertilizers; resurgent capital markets; and global debt fears.
Source: Yahoo News
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