Published by Jamie JemmesonThe Canadian dollar achieved parity against its US counterpart for the second consecutive day yesterday (April 7th), before losing ground on interest rate speculation.On Tuesday, the currency achieved parity for the first time since July 2008 and in trading yesterday it traded as high as 99.78 Canadian cents against the dollar, before slipping to $1.0051.The correction came as speculation grew that the Bank of Canada will push interest rates higher in a bid to curb inflation and control the rise of the loonie, as the Canadian dollar is known. The currency has gained 4.8 per cent so far this year.Speaking to Bloomberg, Stephen Lingard, vice-president at Franklin Templeton Managed Investment Solutions, commented: "We expect the Canadian dollar to continue to strengthen over the long term. If we look at a five-year, ten-year view, its trading through parity is very sustainable."The Bank of Canada has kept its target for the overnight rate on hold at 0.25 per cent since April 2009.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site