Canadian dollar hits 3-1/2 year high

Canada's dollar hit a 3-1/2 year high against a broadly weaker US currency on Friday, shrugging off uncertainty over next week's federal election and data that showed Canada's economy shrank unexpectedly. "The fact that the C$ continues to rally amid a secular decline in the US dollar is of no great surprise," said Jack Spitz, managing director of foreign exchange at National Bank Financial.
Canada's gross domestic product slipped 0.2 percent in February, initially nudging the currency lower and reinforcing expectations the central bank will hold interest rates steady until the second half of this year. But the currency later firmed to C$0.9450 to the USD, or $1.0582, its strongest level since November, 2007 and up from Thursday's North American finish at C$0.9510 to the USD. Some analysts say breaking through that resistance could see the currency target the modern-day high of C$0.9059 or US $1.1039 that it reached in late 2007.