The Globe and Mail reports in its Thursday edition that an optimistic tone struck by the Bank of Canada on Wednesday extended the Canadian dollar's recent hot streak, which has seen the loonie rank among the best-performing currencies this year. The Globe's Tim Shufelt writes that the central bank laid out a vision for a faster economic recovery, shortened the timeline for expected rate hikes, and pared back its bond-buying program. Taken together, these measures amount to a first step in withdrawing the extraordinary levels of intervention triggered by the pandemic. In response, the Canadian dollar gained about 1 per cent against the U.S. dollar to hit an intraday high of 80.28 U.S. cents -- close to its highest level in more than three years. Astronomical fiscal deficits and the billions in new spending laid out in the federal government's budget this week also did little to dampen appetite for the country's currency. "For the Canadian dollar bears ... I think they're still scratching their heads," said BMO's Greg Anderson. To find out why the Canadian dollar has been so strong, look no further than commodity markets, with upward pressure on prices of everything from forest products to base metals to crude oil.
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