Its resource-primarily based economic system, stable political and economic atmosphere, close ties Along with the US, inflation focusing on, and superior amounts of overseas expenditure all lead for the toughness and steadiness of your Canadian greenback.

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Due to this fact, the Canadian dollar is greatly affected from the toughness on the US economic climate along with the US dollar.

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2. Curiosity Fees: The Financial institution of Canada sets interest costs in Canada, although the Federal Reserve sets fascination rates in the US. When desire prices are increased in one country when compared with A different, traders usually tend to put money into the nation with the higher fascination premiums.

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