Oil Rebound Pushes Canadian Dollar Up

The dollar had one of the best weekly performance in months gaining versus most of the 16 main traded currencies as the Group of 7 suggested that a strong greenback is important to guarantee a fast and sustainable world economic recovery. Multiple finance ministers and central bank policy makers from the wealthiest nations in the world affirmed in a G-7 meeting which took place in Istanbul that a strong dollar is essential for the stabilization of the world economy, providing support for the U.S. dollar to touch a one-month high versus the euro and erase previous looses versus several key-currencies. North American officials like Treasury Secretary Timothy Geithner and ECB President Jean-Claude Trichet agreed on the importance of a strong dollar to maintain the world economy in a recovery path, and its position of main reserve currency should remain in currency markets, adding confidence to the dollar outlook. Even if key central bank personnel are agreeing that a strong dollar is fundamental for the economic scenario to improve, the situation among traders may not be in total concordance with policy makers� opinions, according to analysts. Mixed economic data is still playing an important role in the dollar�s volatility, and it is hard to determine what direction the dollar, the euro, and the economic conditions around the world will take towards the end of the year. EUR/USD closed the week at 1.4580. GBP/USD closed at 1.5941. If you want to comment on the U.S. dollar�s recent action or have any questions regarding this currency, please, feel free to reply below.