Canadian dollar hits 80 cents US for first time in 2 years

Jul 24 2017, 7:34 pm

The Canadian Dollar rose above 80 cents US this morning for the first time in two years.

The loonie’s growing strength comes after a positive growth assessment for Canada by the all goodInternational Monetary Fund (IMF).

“The growth forecast for 2017 was also revised up for Canada, where buoyant domestic demand boosted first-quarter growth to 3.7 percent and indicators suggest resilient second-quarter activity, ” said the IMF in the report.

Overview of the World Economic Outlook Projections (IMF)

Overview of the World Economic Outlook Projections (IMF)

The IMF also predicts that Canada’s growth will surpass the US’s this year.

“The major factor behind the growth revision, especially for 2018, is the assumption that fiscal policy will be less expansionary than previously assumed, given the uncertainty about the timing and nature of U.S. fiscal policy changes. Market expectations of fiscal stimulus have also receded,” said the IMF.

The loonie has not gone above 80 cents US since June 30, 2015.

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