Canadian Dollar / Danish Krone - CAD/DKK

As Denmark is an historical member of the European Union and joined the convergence system ERM II (Exchange rate Mechanism II) while the Danish citizens said “no” to the Maastricht Treaty in 1992 and a referendum of September 2000 confirmed that they wanted to keep their national currency, the Danish Krone oscillated in a very narrow fluctuation band(+/- 0,5 %) in relation with the euro: so the control of the Denmark National Bank goes further than expected in the ERM II ( that are at +/-15% for the national currencies of the countries which will have to join the euro area).

So we had EUR/DKK = 7,4652 in January 2001 and EUR/DKK = 7,4437 by mid-October 2009.

So the fluctuations of the CAD/DKK cross have nearly been the same the fluctuations of the EUR/CAD (or more precisely of the CAD/EUR) for 10 years.

Like the CAD/EUR cross, the CAD/DKK cross increased in 2005, going from CAD/DKK = 4,7 in January 2005 to CAD/DKK = 5,45 at the end of the first quarter of 2006.

After a break observed at the beginning of 2007 (CAD/DKK = 4,8 in March 2007), the increase of the world oil exchange rates was in favor of the Canadian dollar against the Danish Krone, as against the euro (against the US dollar, the trend is even more clear).

So we had the maximum values of CAD/DKK = 5,4 in October 2007.

While the oil rates stabilized and progressed until the Spring 2008, the CAD/DKK cross began to decrease (a decrease of the CAD/EUR due to a re-appreciation of the euro against the Canadian dollar) since the beginning of 2008.

This decrease lasted because of the worsening of the world financial crisis of thee Fall 2008 until the exchange value CAD/DKK = 4,37 reached in December 2008: at the same time the EUR/CAD cross reached its higher at EUR/CAD = 1,7152 (December 2008).

In 2009, the Canadian dollar gained ground again against the euro as against the Danish Krone (because the oil rates began to increase again) and we had CAD/DKK = 5,0080 by mid-January 2010.