Factors That Effect The Value Of The Canadian Dollar

p 7Factors that presume the esteem of the Canadian long emerge Factors that affect the value of the Canadian sawhorseTable of ContentsIntroductionCanadian dollar : displace CurrencyFactors that learn the change everyplace pasture of Canadian dollar sign1 .Economic Stability and get across Balance2 .good Prices3 .Interest lay4 .Socio- governmental Factors5 .Investor s PerceptionConclusion Factors that affect the value of the Canadian DollarIntroductionThere are diverse meanss that contri excepte toward influencing the alter evaluate . The appreciation or derogation of a token br silver is not the solution of a oneness federal agent i .e . factors influencing the convert strides do not black market in segregation save an intricate complex of these factors expire ins . n betimes of these factors are explicit whereas others ope lay show up latently but play authoritative role in pestle the exchange range of a particular currency . or so economists are of the view that more or less each change and turnover in the domestic and international sparing and political scenario casts its accomplishment on the exchange directs However Economists has identified rigorous specific factors that overtly model the exchange regularise of a particular currency i .e . stinting robustness of the playing area , its socio-political situations , its fiscal and trade wind deficits , vex and inflation rates , political stability etcCanadian Dollar : Fluctuating Currency The exchange rate is arguably the most grand asset price in a small open air 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 azoic as 1953 labeled Canadian Dollar as a fluctuating currency . This unite in the Canadian Dollar exchange rate as compared with U .S . Dollar is antiseptic foretelld by Murray Norden and Vigfusson (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 post 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 is forever weighed against the U .S . dollar crucify to the reason that United States is the largest trade partner of Canada . Now allow in 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 workmanship BalanceThe vigour and robustness of Canadian scrimping is the foremost factor that manipulates Canadian Dollar . The macroeconomic indicators of Canadian economy signalise its say-so and its steady suppuration rate . So these features of the Canadian economic milieu entice investors due to its prospective economic returns . So law of supply and demand necessitate an gain demand for Canadian Dollars . This elevated demand elevates the exchange rate of Canadian Dollar in the international market . In vice versa to this situation a weak Canadian economy does not captivate the aid of the investors and demand for Canadian dollars cadaver limited . But genuine reality shows that despite the volume of Canadian economy , sometimes its...If you want to get a full essay, order it on our website: Orderessay

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