The Canadian Dollar is stronger after a government report revealed that its trade surplus has increased to its highest level since December 2005. The Canadian Dollar's strengthened despite another government report revealing that there were fewer jobs created last month. Canada's trade surplus increased to 5.76 billion Canadian Dollars from 5.1 billion earlier in March. ''Today's economic data is net positive for the Canadian dollar,'' said Dustin Reid, a senior foreign-exchange strategist at ABN Amro Inc. in Chicago. ''In an environment where people are avoiding risk and readjusting their portfolios, we shouldn't expect bigger gains.''
The Canadian Dollar had recently hit a 30-year high of 94.79 U.S cents after its central bank held its target rate overnight on May 29. Speculation has also increased that the Bank of Canada will raise its borrowing rates twice before the end of 2007. ``The Canadian dollar is back on track nicely after a good shakeout,'' said Steve Butler, director of foreign exchange trading at Scotia Capital Inc., a unit of Canada's second largest lender. ''Investors understand the Bank of Canada is still on track for a hike in interest rates in July.''
In the foreign exchange, the Canadian Dollar traded at 94.28 U.S. cents in comparison to a previous trade of 93.91 U.S. cents.
The Australian Dollar has also recently hit an unexpected 18 year high amidst the release of data revealing strong economic growth.
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