The Canadian Dollar, also known as Loonie has decreased against most of its major counterparts today. The Securities Regulator of China has announced that more foreign investment is expected to be done in the Chinese firms and this news, reportedly had a detrimental effect on the major currency of Canada. The news was announced by the Chairman of the China Securities Regulatory Commission Guo Shuqing and helped the Chinese stocks rise to its highest level within the last 30 days.
According to the Managing Director of Foreign Exchange Department of The Bank of Canada, Jack Spitz, investors are currently seeing Canada as a bystander when it comes to the flow that leads Asia over the Northern America.
The Loonie has gone down by 0.1% against USD and is currently priced at 98.54 cents per USD. On the other hand, it experienced a decline of 0.3% against Australian Dollar. Each Australian Dollar values to C$1.0410 currently. The Loonie has also depreciated by 0.7% against the New Zealand Dollar.
Many analysts believe that the Canadian Dollar will increase by 1% against USD and be priced at 98 cents every USD by end of this year. If this happens, then the Loonie will become one of two currencies which will gain against the currencies with at least a single AAA rating and also a consistent outlook from the 3 largest credit rating companies. Many believe that the Bank of Canada will be increasing the benchmark rate in 2013 from the current value of 1%. Incidentally, this is only predicted increase in the top rated country club that includes other big names such as Switzerland and Australia.
On the other hand, the 10-year Government Bonds of Canada rose to higher level today. The yields got down by 1 basis point and are currently at 1.93%. The 2.75 percent note which is scheduled to mature by June, 2022 has also experienced a price increase of 8 cents. This is currently priced at C$107.
According to reports, the Bank of Canada is going to sell around $3.4 billion of notes which are scheduled to mature in May 2015 on 16th January. The Loonie, according to statistics, has plummeted by 0.3% in December, 2012, in comparison with the 9 most traded currencies. The greenback has also declined by the same rates in December.