The Canadian dollar rose sharply Thursday, amid rumours of a mystery buyer active in the currency markets.
The loonie closed up 1.28 cents to 99.61 cents US, gaining 2.2 cents in two days.
The Canadian dollar closed at 99.61 cents US Thursday, up 1.28 cents. (Paul Chiasson/Canadian Press)
Traders regard the loonie as a commodity-based currency, much like the Australian and New Zealand dollars, but the Canadian dollar's sharp rise outpaced those currencies and commodities themselves.
That's prompted a rumour that there's a large buyer of Canadian dollars in the market, Camilla Sutton, chief currency strategist at Scotia Capital, told CBC News.
But Sutton said if there is such a buyer, there's no way to know who it is.
"Your speculation is as good as mine," she said. "It's very hard to quantify and it may be something that nobody ever finds out about."
"The foreign exchange market is huge and so it would take a significant flow, it's not just somebody buying a million dollars because they're looking at buying a property or something, it would have to be something far larger than that."
Read more: http://www.cbc.ca/money/story/2010/12/02/dollar-gains.html#ixzz173JCaSyT
Friday, December 3, 2010
Posted by The Old Tarf at 4:48 AM