Rising oil prices continue to drive the Canadian dollar higher and there’s every indication that we’re not at the top just yet.
“The dollar has been on an absolute tear,” said James Telfser, portfolio manager for Aventine Investment Counsel, who spoke on BNN Bloomberg on Wednesday.
“It doesn’t seem inconceivable to us that oil continues to rally and commodities continue to rally here. We’ve seen no signs of that slowing down,” he said.
“Inflation has been persistent and it will likely continue, and in that environment the Canadian dollar is going to outperform, and so I wouldn’t be surprised to see a little bit more here,” Telfser said.
The loonie has been taking a bit of a breather over the past couple of weeks, dropping to 82.14 cents to the US dollar, while still remaining the top-performing Group of 10 currency this year, gaining over five per cent to the American dollar. The dollar rose above 83…