The Canadian dollar soared to a 14-year high against the greenback on Friday and also hit new peaks against several other major currencies as momentum players bet on a steady economy, more interest rate hikes and further investment in Canada's oil patch.
Bond prices rose on the long end, helped by a late-day stock selloff. The currency finished at C$1.1627 to the US dollar, or 86.01 US cents, up from C$1.1712 to the US dollar, or 85.38 US cents, at Thursday's close.
Despite a middling July economic growth report and weaker crude oil prices, the currency rose as high as C$1.1588to the US dollar or 86.30 US cents, its strongest level since January 1992. "I think today the movement is more about flows.
There isn't too much of a fundamental story," said David Power, currency strategist at IDEAglobal in New York.
Analysts said the currency was benefiting from momentum players who were encouraged by its ability to bounce back from weakness at mid-week.
"Once we went past C$1.1625 (86.02 US cents), it plummeted even further.
It was a pretty formidable level of resistance there," Powell said.
The currency's strength extended across the board, as it reached a three-year high versus the euro, a seven-year high against the yen and a four-year peak versus the Swiss franc.
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