My 2cents worth: Why the Canadian dollar surged near parity in two days
Michael Babad
RTGAM






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Loonie surges
The Canadian dollar has surged more than 2 cents in as many days to close in on parity with its U.S. counterpart yet again.

From a close of 97.41 cents U.S. on Wednesday, the loonie has rebounded smartly as the U.S. dollar weakened, commodities rose and markets just generally perked up on better economic news from China and the United States, buoyed too by the European Central Bank meeting today.

"The easy tale is simply that we've got a clear resumption of risk," said Mark Chandler, head of fixed income and currency strategy for Canada at RBC Dominion Securities in Toronto.

But he noted, even with the U.S. dollar softening, the Canadian dollar was the best performing currency of the majors today.

The loonie closed at 99.61 cents today, up 1.28 cents.