Canada’s dollar appreciated against its U.S. counterpart as global stocks rose, sending the MSCI World Index to its first gain in eight days. “We’re seeing a correction taking place across the board with equity markets showing a little bit of stability,” said Ian Stannard, a currency strategist in London at BNP Paribas SA. “We’re seeing the commodity currencies able to regain some ground against the U.S. dollar. The Canadian dollar has been able to take advantage of that situation.” The Canadian currency strengthened 1.1 percent to C$1.2377 per U.S. dollar at 7:52 a.m. in Toronto, from C$1.2527 yesterday. One Canadian dollar buys 80.80 U.S. cents. The MSCI World, a benchmark index for 23 developed countries, rose 1.8 percent to 868.4 on speculation that fiscal stimulus packages in the U.S. and the U.K. may help alleviate some of the effects of the global economic slump. Canada’s currency may appreciate to C$1.2240 “in the next few days,” Stannard said. “Equity markets seem to be responding quite favorably to the latest round of packages in the U.S., and also in the U.K. it looks highly likely we’ll get some further measures announced as well.”

Source