Canadian dollar to strengthen as BoC moves 'aggressively' on rate hikes

A Canadian dollar coin, commonly known as the “Loonie”, is pictured in this illustration picture taken in Toronto January 23, 2015. REUTERS/Mark Blinch//File Photo

TORONTO, June 2 (Reuters) – The Canadian dollar will gain ground over the coming year as high commodity prices bolster Canada’s economic outlook and the Bank of Canada likely continues to raise interest rates aggressively, a Reuters poll showed.

The loonie is the only G10 currency to keep pace with the U.S. dollar , a magnet for safe-haven flows, in 2022.

The median forecast in the poll was for Canada’s currency to strengthen 0.4% to 1.26 per U.S. dollar, or 79.37 U.S. cents, in three months’ time, compared to 1.2568 in last month’s forecast. It was then expected to climb to 1.23 in a year’s time.

“I think there (are) pretty solid reasons to be…