interest rates at a time when Canada's economy seemed stalled. There were plenty of naysayers predicting deep economic gloom ahead. In mid January, the dollar dipped below 69 cents US.
But it's sprung back in the past two weeks.
National Bank economists Stfane Marion and Krishen Rangasamy believe the loonie is headed for 76 cents by the end of the year, though all currencies will be volatile throughout 2016.
"Mauled by bears and left for dead just a few weeks ago, the Canadian dollar is now back with a vengeance," they wrote in a report today, saying Leo DiCaprio should be impressed by the loonie's "Revenant like performance."
In the movie The Revenant, DiCaprio plays a frontiersman who survives a bear attack in which he was left for dead. dollar has helped the loonie recover.Sonosite Ultrasound Probe But markets also have started to question whether the Bank of Canada needs to cut interest rates again, they said.
Oil and markets up
There are hopes that Ottawa's fiscal stimulus will be enough to boost the economy and that oil will recover at least to $40 US.
Oil was having a good day on Tuesday,Aloka Ultrasound Probe after Russia said it was close to a deal with OPEC that could put a cap on production.
West Texas Intermediate, the benchmark North American contract, rose 58 cents to $34.34 US a barrel, a two month high.
The TSX was ahead 112 points to 12,972 at the close.Sonosite Ultrasound Probe Energy stocks strengthened and financial shares advanced after Scotiabank turned in a rise in quarterly profit.
Much of the optimism came from Canada's fourth quarter GDP report. Growth in the quarter was a scant 0.8 per cent, but that was well ahead of expectations and pushed full year growth to 1.2 per cent.
The main drag on the Toronto index came from Valeant shares, which sank after the company revealed it faces a Securities Exchange Commission probe.