A Dramatic Month For The Canadian Dollar

Posted March 20, 2010

Sometimes we see currency pairings that really make us sit up and take notice. One such pairing was here to see last month, as the Canadian dollar went up against the Japanese yen on the currency converter. We had some drama early on followed by quite a comeback, so let’s take a look at what happened in more detail.

 

At the end of day one the Canadian dollar was worth 84.476 Japanese yen.  But things change very quickly in the currency markets and it looked as if the Canadian dollar had the upper hand the very next day.  This was when it improved things to 85.455.  There was a slight drop the following day but all that was forgotten when the Canadian dollar upped things to 85.490 the day after.

Things looked good so far – but then the Japanese yen came storming back and knocked the dollar back down to a lowly 83.337 the very next day.  That just so happened to coincide with the end of the week, and it certainly gave us food for thought as we all paused for breath over the weekend.

First blood went to the Canadian dollar the following week as it finished on Monday night with a rate of 83.381 in the bag.  It consolidated that increase the next day with a renewed rate of 84.059, before faltering and dropping back to 83.868 on the 10th of the month.

So we were over a third of the way through the month so far, and it was hard to tell quite which way this was going to go.  The 11th might have given us a clue though, since the Canadian dollar finished the day on 84.836 on that occasion.  Could it continue to climb up throughout the rest of the month or would it experience another sudden drop thanks to the efforts of the Japanese yen?

There was one day of trading left until the end of that week and the story unfolded in favor of the dollar on that occasion.  By the time everyone quit for the day they were back to 85.731 on the exchange rate.

We sometimes see a sudden drop on the Monday following a good finish to the previous week.  But it soon became clear that wasn’t going to happen this time.  Indeed the rate for Monday night went up to 85.890. 

It didn’t end there either.  The very next day saw a rate of 86.006 and just twenty four hours later that had risen to 87.159 as the dollar took hold over the yen.  Could we expect more rises yet, or was this the extent of what would occur?

As it turned out the high point of those remaining few days occurred on the 22nd, when the Canadian dollar bagged a rate of 88.006.  It fell to 86.924 the following day though, and by the time the month was done it was back to a more respectable 84.241.  What an interesting month it was, in every respect.