The Canadian Dollar (CAD) is the official currency of Canada and is used in financial markets globally. It is an important currency for investors and traders in foreign exchange markets, as it is a liquid and reliable currency with a high degree of stability. The CAD is also used to hedge against currency risks, as its low-volatility makes it a reliable asset in times of market volatility. The CAD is also used in a variety of trading strategies, such as carry trade, which involves taking advantage of the differences in interest rates between two countries. Lastly, the CAD is used as a base currency in many trading pairs, making it an attractive choice for investors seeking international exposure.