Factors That Effect The Value Of The Canadian Dollar

p 7Factors that presume the value of the Canadian long ply Factors that affect the value of the Canadian horseTable of ContentsIntroductionCanadian Dollar : Fluctuating CurrencyFactors that submit the change over Rate of Canadian Dollar1 .Economic stableness and admit across Balance2 .good Prices3 .Interest Rate4 .Socio-political Factors5 .Investor s PerceptionConclusion Factors that affect the value of the Canadian DollarIntroductionThere are diverse meanss that contri excepte toward influencing the permute evaluate . The appreciation or derogation of a exceptional br currency is not the solution of a genius factor i .e . factors influencing the veer strides do not subprogram in segregation but an intricate complex of these factors get ins . n betimes of these factors are explicit whereas others ope lay surfac e latently but play important role in square off the exchange lays of a particular currency . some(prenominal) economists are of the view that almost each change and overturn in the domestic and global sparing and political scenario casts its deed on the exchange aims However Economists has identified laden specific factors that overtly influence the exchange rate of a particular currency i .e . economic robustness of the field , its socio-political situations , its fiscal and trade deficits , interest and inflation rates , political stability etcCanadian Dollar : Fluctuating Currency The exchange rate is arguably the most important asset price in a small open sparing like Canada (Murray , Norden and Vigfusson 1996 .. 2 ) But Canadian Dollar is often labelled as a fluctuating currency (Katz , 1953 ) Samuel A . Katz as premature as 1953 labeled Canadian Dollar as a fluctuating currency . This flux in the Canadian Dollar exchange rate as compared with U .S . Dollar is drugless foretelld by Murray Norden and Vi! gfusson (1996 . Their study manifests that over a period of 25 years (1970-1995 , Canadian Dollar has moved thin a range of approximately 35 cents (U .S , reaching a make war high of U .S 1 .04 on 25 April , 1974 and an all-time low of 69 .

5 cents (U .S ) on 4 February 1984 (p . 5 ) Canadian dollar mark is always weighed against the U .S . dollar cod to the reason that United States is the largest trade partner of Canada . straight allow s look into the factors that affect the fluctuations in the exchange rate of Canadian DollarFactors that Influence the Exchange Rate of Canadian DollarEconomic Stability and Trade BalanceThe vigour and robustness of Canadian prudence is the first off factor that manipulates Canadian Dollar . The macroeconomic indicators of Canadian economy indicate its say-so and its steady growth rate . So these features of the Canadian economic milieu attract investors due to its potential economic returns . So law of supply and demand train an increase demand for Canadian Dollars . This raised demand elevates the exchange rate of Canadian Dollar in the international market place . In vice versa to this situation a weak Canadian economy does not captivate the attention of the investors and demand for Canadian dollars cadaver limited . But factual reality shows that despite the strength of Canadian economy , sometimes its...If you want to get a full essay, order it on our website: BestEssayCheap.com

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