The Canadian dollar will gain ground over the coming year as high commodity prices bolster Canada's economic outlook and the Bank of Canada likely continues to raise interest rates aggressively, a Reuters poll showed. The loonie is the only G10 currency to keep pace with the U.S. dollar, a magnet for safe-haven flows, in 2022. The median forecast in the poll was for Canada's currency to strengthen 0.4% to 1.26 per U.S. dollar, or 79.37 U.S. cents, in three months' time, compared to 1.2568 in last month's forecast.
The Canadian dollar will claw back its recent decline over the coming year, as elevated oil prices bolster Canada's trade surplus and the central bank potentially hikes interest rates just as much as the U.S. Federal Reserve, a Reuters poll showed. This has occurred as the safe-haven greenback has been supported against major currencies by bets that the Federal Reserve would raise interest rates aggressively to tame inflation.