The Canadian dollar pulled off an impressive performance on Wednesday trading after it made huge advances against the US dollar and its European rivals as OPEC’s production cut lifted commodity-linked currencies.
The Organization of Petroleum exporting Countries and other non-OPEC members including Russia began cutting their oil production last January 1, 2017 which immediately resulted to a surge on oil prices and oil-related currencies including the Canadian dollar.
On Wednesday, the international benchmark, Brent futures, settled up 1.8%, adding $1.02 dollars at %56.49 per barrel while the West Texas Intermediate added 93 cents at $53.26 per barrel.
The Canadian dollar cheered on this oil rally, helping the Lonnie shrugged off the recent US economic figures that showed an expansion on its manufacturing activity last month, and finished up 0.70 cents, 0.9% higher against its US counterpart at 75.14 cents.
The Toronto stock exchange provided a needed support to the currency as it hit its 20-month high, jumping 113.72 points at 15, 516.75.
The Canadian dollar also leapfrogged its major rivals in Europe as it finished up 1.39222 against the euro and 0.61 against the British pound.
Against the Japanese yen, the Lonnie erased a five day low and settled at 90.00 level while the Aussie remained steady at 0.96.
The commodity-based currency made a total round in the second half of December and fell below 1.33 level in December.
But when the oil cartel announced its agreed deal to curb output, the Lonnie was poised to gain enough strength as oil prices are expected to move upward.