The Canadian dollar advanced today, reaching the highest level in three weeks versus its US counterpart. The currency fell against the euro, but almost erased the drop, while the loonie maintained its losses versus the Japanese yen.
The US Consumer Price Index increased 0.7 percent in February, suggesting that the US economy is on track to growth. At the same time, the level of inflation is not high enough to make the Federal Reserve drop its accommodative measures. Such view is positive for the risk sentiment, which in turn benefits the Canadian currency.
Crude oil advanced 0.5 percent to $93.48 per barrel in New York, while earlier it touched $93.84 per barrel, the highest price since February 25. Analysts believe that prices above the $90 level are very supportive for CAD.
USD/CAD fell from 1.0219 to 1.0191, the lowest settlement since February 21, as of 20:13 GMT today. EUR/CAD rose from 1.3290 to 1.3306, dropping from its daily high of 1.3362. Meanwhile, CAD/JPY went down from 93.98 to 93.54.
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