The Canadian Dollar surged after US President Donald Trump decided to advance the construction of the Keystone XL pipeline, which would help America shipping more crude Oil from Canada and maintain growth.
The currency rallied as much as 1% to C$1.3106 per US Dollar, outperforming its Group-of-10 peers and extending its advance to 2.1% for 2017. It appreciated for a second day, recovering from a two-week low reached last Friday.
Trump’s choice to move forward with this pipeline project is a response to the Obama administration, which rejected the project in 2015. It also helped reignite a rally in the currency that was halted last week by comments from Bank of Canada Governor Stephen Poloz, saying he was prepared to cut interest rates if the US were to impose protectionist measures that would derail the nation’s economy.