Loonie inching toward parity again

The Canadian dollar is again inching closer to parity with its American counterpart as the U.S. dollar loses steam against a number of global currencies.

TORONTO — The Canadian dollar is again inching closer to parity with its American counterpart as the U.S. dollar loses steam against a number of global currencies. The loonie gained 0.59 of a cent to 98.94 cents US Wednesday, the highest level it has seen since May. Earlier in the day, the dollar climbed as high as 99.37 cents US. The U.S. dollar’s slide comes amid expectations that the U.S. Federal Reserve reserve will soon increase its support for the U.S. economy, driving down interest rates and dinging the currency’s appeal for investors. Lower rates mean that assets bought in U.S. dollars offer investors lower returns, weighing on the dollar. It’s far less likely that there will be much more stimulus in Canada, where the economy remains in relatively better shape and interest rates have already begun to move higher.