Canadian Dollar Rebounds to 77 Cents U.S. As Oil Prices Jump

The loonie has gained nearly nine cents against U.S. currency since January

By Dillon Tabish
Panorama of Calgary at sunrise. Calgary, Alberta, Canada. Fotolia image

The Canadian dollar is making a slight comeback.

Following news that the U.S. Federal Reserve would not raise interest rates and amidst rising oil prices, the Canadian dollar, or loonie, traded above 77 cents U.S. on Thursday, the highest level in 2016.

The loonie has gained nearly nine cents against U.S. currency since January, when it hit a 13-year low. A visitor would still have to convert $130 Canadian for $100 U.S.

The gain in Canada’s currency is largely welcome news in Northwest Montana, where several industries benefit from the persistent spending habits of visitors from up north.

The rise in the loonie is also coming as one of the longer holiday weekends approaches. Canadians celebrate the Easter holiday by taking off the Friday beforehand and the Monday afterward, meaning there could be an uptick in Canadian visitors March 25-March 28.

A key driver of the Canadian dollar, the price of oil spiked to $40 a barrel on Thursday for the first time since early December. The price of oil has now jumped 54 percent in five weeks since hitting a low of $26.05 per barrel.

The sudden turnaround in oil prices is due to speculation that OPEC and other global producers would reach an agreement to halt output.

Despite the recent recovery in oil prices, experts say the market will likely remain very volatile in the near future.

The price per barrel of oil is still down more than 60 percent from its mid-2014 peak of $107 a barrel.

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