Loonie on track for best quarter since 2003 after Bank of Canada rate hikes
The Canadian dollar has appreciated against the U.S. greenback by more than a nickel over the past two months, a swift and somewhat surprising climb that has put the loonie on pace for one of its best fiscal quarters ever.
The dollar was trading at 82.54 cents U.S. as of 4.30 p.m. ET Thursday, up 5.4 cents or 7 per cent since the end of June.
“The Canadian dollar has continued to push higher contrary to most expectations, ours included,” CIBC World Markets Ian de Verteuil and Shaz Merwat said on Wednesday.
According to data from Bloomberg, the last time there was a 6-per-cent-plus quarterly surge for the loonie was in the first quarter of 2016, when it rose 6.41 per cent to 76.9 cents U.S. That move was actually a rebound after tumbling oil prices at the start of the year weighed on the economy and pushed the loonie below the 70-cent mark.
