Canadian dollar hits strongest level in more than two years

Canadian dollar coins are displayed on a map along the border of Canada and the United States of America, in Montreal in a January 9, 2014, file photo. THE CANADIAN PRESS/Paul Chiasson

The Canadian dollar touched its strongest level against the U.S. dollar since October 2018, following positive COVID-19 vaccine news from Pfizer and news over the weekend that Joe Biden won the U.S. presidential election.

The loonie was trading at 1.30 to the greenback, or 77 U.S. cents around mid-morning, before easing slightly. The move tracked other resource and trade-based currencies as well as the global stock market, which surged after Pfizer said Monday that data for its coronavirus vaccine indicated it could be 90 per cent effective. The news also sent Wall Street back to record heights. Rising stocks indicate a return to risk for investors, which drives the safe-haven U.S. currency lower.

Oil prices, which tends to also impact currencies of oil producing countries, also climbed higher Monday.