BLBG: Canada's Currency Appreciates as Spreads Narrow, Stocks Climb
By Chris Fournier
Nov. 3 (Bloomberg) -- Canada's currency rose to the strongest in two weeks as money-market rates declined, stocks in Europe and Asia gained and U.S. equity-index futures advanced.
The Canadian dollar has strengthened 7.1 percent since Oct. 24, paring its decline this quarter to 11 percent. The Bank of Canada Commodity Price Index has declined for five weeks to the lowest since January 2007.
``The market seems to be feeling a little better,'' said Steven Butler, director of foreign-exchange trading at Scotia Capital Inc. in Toronto. ``After a wild two weeks, I think the Canadian dollar may have been a little oversold.''
Canada's currency, dubbed the loonie for the aquatic bird on the one-dollar coin, climbed as much as 1.9 percent to C$1.1895 per U.S. dollar, from C$1.2125 on Oct. 31. It traded at C$1.1956 at 8:05 a.m. in Toronto. It reached C$1.1744 on Oct. 20. One Canadian dollar buys 83.69 U.S. cents.
Money-market rates fell in Europe and Asia on speculation central banks will keep cutting interest rates to spur lending and shore up the global economy.
Europe's Dow Jones Stoxx 600 Index advanced 0.3 percent.
The Canadian dollar dropped 12 percent in October, its worst month since at least 1950.
To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net
