The Canadian dollar rose today against its U.S. counterpart and some other currencies as the growth of the global stocks and the advance of the commodities increased the attractiveness of the growth-related currencies.
The loonie started the year gaining versus most of the 16 main traded currencies as its chief export, the crude oil, advanced further, naturally forcing the Canadian correlated currency up in foreign-exchange markets.
Canada’s dollar rose for the first time in three days as stocks and crude oil advanced and speculation increased that the nation’s central bank will raise interest rates faster than other countries.
The dollar continued to tail off versus the euro and edged closer to parity versus the resurgent loonie Tuesday morning in New York. Concerns about the debt problems facing euro area member nations had been giving the dollar a boost in recent weeks, but with few other catalysts to drive trading, the buck could have trouble rising.
The Australian dollar is being overtaken by the Canadian dollar among commodity currencies as the safety of Canada’s banking system and ties with the U.S. economy spur investors to buy the loonie.
Canada’s currency posted the biggest monthly drop since June as traders bought the U.S. dollar to hedge against losses in the stock and commodity markets.
Canada’s dollar increased the most in more than a month as European leaders reached an agreement on Greece’s deficit, spurring demand for currencies tied to growth. Government bond yields rose.
Canada’s dollar appreciated for a third day in the longest stretch of advances in five weeks as European leaders reached an agreement on Greece’s debt crisis, spurring demand for currencies tied to growth.
