The Canadian dollar hit 81 cents against the US dollar earlier this week but, rather than blaming the loonie’s rally on the Bank of Canada and its recent interest rate hike, the rebound appears to be linked more to the recent resurgence in crude oil prices. Indeed, based on the rise in the West Texas oil price alone, the loonie should probably have rebounded even more. One complication, however, is that Canadian oil prices have actually been stagnant because of the problems that domestic producers are having with transporting their oil down south.
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