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The Rise of Canadian Dollar

When people talk about currencies which have seen much appreciation in the recent past, Canadian dollar should strike your mind before any other currency, along with the US dollar, Japanese Yen, and the British pound, now the Canadian dollar is right up there among the top currencies in the world, its value has much appreciated in the recent past and it is currently among the top most traded currencies in the international trade market, it shares the top spots among the most elite currencies, like the GBP USD JPY and others.

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There has been a lot of development in the value and reputation of the Canadian dollar in the recent past, it is hard to believe that the Canadian dollar has seen the most improvements as compared to any other currency, especially compared to the US dollar, as it is always been compared to it, some economist also call the US dollar as the ELDER BROTHER of the Canadian dollar, and even they have been left surprise by the progress of the Canadian dollar in recent times, and the government of Canada expects the Canadian dollar to be stable, in fact couple of years ago they announced that they expect an increase in the value of the Canadian dollar, and they were right on their part that there was a little appreciation in the value of the Canadian dollar. But in the last couple of years the country has faced a bit of slowdown in progress, Canada has faced a bit of inflation in recent years, may be that is only because of the global downturn and Canada may not be concerned about that, but every little detail should be considered, because you never know what impact it may bring on the economy and the currency. The CPI (Consumer Price Index) went up by 1% in Canada couple of years ago that indicated a bit of inflation in the country.

After facing inflation the government of Canada announced that the interest rates would rise a bit, that did not help the stability of the Canadian dollar, but that was needed at that time, well along with the inflation and the rise in interest rates, factors like global downturn, recession and rising oil prices might also have an effect on the value of the Canadian dollar. As for now the Canadian dollar is stable and commonly traded in the international trade and monetary markets. It is getting stronger as it reaches par with the US dollar, but if you are an investor willing to invest in foreign currency, and you have decided to invest in the Canadian dollar, do not be hasty in making a decision and invest all you have got in it, because a good investment is a one which is made after considering all the possible aspects, the Canadian dollar is a safe and stable currency to invest in, but before doing so I think you should take all these factors into account and then go any further.