BLBG: Canada’s Dollar Climbs, Trades Near Highest Since October
Canada’s dollar rose against its U.S. counterpart, trading near the highest level in almost eight months as signs a recovery in the global economy is under way burnished the appeal of currencies linked to growth.
“There are a number of reasons why the Canadian dollar should continue to post gains, primarily on the back of the global growth story and commodities,” said Jack Spitz, managing director of foreign exchange at National Bank of Canada in Toronto.
The Canadian dollar strengthened as much as 1.2 percent to C$1.0803 per U.S. dollar before trading at C$1.0830 at 8:05 a.m. in Toronto, compared with C$1.0935 yesterday. One Canadian dollar buys 92.34 U.S. cents. The loonie, as Canada’s dollar is known, touched C$1.0785 yesterday, the strongest since Oct. 3.
Manufacturing in the U.S. shrank in May less than forecast, spurred by the first gain in new orders since the recession began, according to a report yesterday from the Tempe, Arizona- based Institute for Supply Management. Canada sold about three- quarters of its exports to the U.S. last year.
