The Canadian Dollar (CAD) is a key currency in global financial markets. It is used to facilitate international trade, as many financial transactions involve selling or buying goods and services in exchange for a currency like the CAD. Investors also use the CAD to diversify their portfolios and hedge against currency risk. The CAD is a major component of many currency pairs, and its value can be used to speculate on global economic trends. As a result, the CAD is a popular currency for both institutional and retail investors.