The Canadian dollar consistently appears to move almost independently of other currencies. That is it exhibits low correlations with the other currencies.

Question

Quizplus · Accepted Answer

This statement is true. The Canadian dollar (CAD) is often considered a commodity currency, as it is closely tied to the country's natural resources such as oil, gas, and minerals. Therefore, its fluctuations are primarily driven by domestic factors rather than international market trends, which leads to low correlation with other currencies.

The Canadian Dollar Consistently Appears to Move Almost Independently of Other