Investing.com – The Canadian dollar surged against its U.S. counterpart on Tuesday, approaching a 19-month high, ahead of a key decision by the U.S. Federal Reserve on interest rates.
USD/CAD sank to 1.0163 during European midday trade, close to Friday's low of 1.0155, the pair's lowest rate since July 25, 2008.
The pair was likely to find support at 0.9975, the low of July 15, 2008, and resistance at 1.0361, the high of March 3.
The loonie also rose against the yen, with CAD/JPY jumping 0.44% to hit 89.19.
On Monday, Canada's finance minister said the Canadian dollar was at a level that continues to keep the nation’s economy competitive, despite the fact that it was rapidly nearing parity with the greenback.
Speaking to Bloomberg Television in New York, Jim Flaherty said: “We see where it is now, and it’s competitive.”
Meanwhile, the U.S. Federal Reserve's Federal Open Market Committee on Tuesday was due to hold a policy-setting meeting, at which it was expected to reiterate its vow to keep interest rates very low for an "extended period."
Also Tuesday, Canada was set to publish data on manufacturing sales and labor productivity.
USD/CAD sank to 1.0163 during European midday trade, close to Friday's low of 1.0155, the pair's lowest rate since July 25, 2008.
The pair was likely to find support at 0.9975, the low of July 15, 2008, and resistance at 1.0361, the high of March 3.
The loonie also rose against the yen, with CAD/JPY jumping 0.44% to hit 89.19.
On Monday, Canada's finance minister said the Canadian dollar was at a level that continues to keep the nation’s economy competitive, despite the fact that it was rapidly nearing parity with the greenback.
Speaking to Bloomberg Television in New York, Jim Flaherty said: “We see where it is now, and it’s competitive.”
Meanwhile, the U.S. Federal Reserve's Federal Open Market Committee on Tuesday was due to hold a policy-setting meeting, at which it was expected to reiterate its vow to keep interest rates very low for an "extended period."
Also Tuesday, Canada was set to publish data on manufacturing sales and labor productivity.