The Canadian dollar reported to be neck to neck with the U. S. dollar on Tuesday, reaching its highest level since July 2008. The value of the Canadian dollar has been enhanced with the rise in the commodity prices and the predictions on the rise in the domestic interest rates.

Jon Gencher, Director of foreign exchange sales at BMO Capital Markets, said that the rise in the value of the Canadian dollar had been forecast well in advance. Thus, it didn't bring much surprise to them.

"We've been calling to have the prospect of higher rates in Canada. You have the prospect of higher commodity prices and it's building to it", he said.

The currency which is also called the loonie was spotted to be at par with the greenback on July 22, 2008, wherein it hit C$0.9999 to the U. S. dollar.

Gencher further said that the recent surge appears to be more consistent as compared to that in 2008. He also said that the dollar would continue to float around parity further too.

Following this, the Bank of Canada has made a commitment to maintain the key interest rate at 0.25% till June end if inflation remains unchanged.