SFG: Canada's Dollar Rises First Time in 4 Days Before Bank Meeting
April 20 (Bloomberg) -- Canada's dollar appreciated for the first time in four days versus its U.S. counterpart as crude oil and stocks gained before an interest-rate decision by the nation's central bank.
The Canadian currency rallied to parity with the greenback on April 6 for the first time in almost two years on speculation interest rates will rise faster in Canada than in the U.S. Bank of Canada Governor Mark Carney pledged to leave interest rates on hold until the second half of 2010. Five of 15 economists in a Bloomberg survey predict the benchmark rate will rise before the end of June.
"I'm still thinking July," said Jack Spitz, managing director of foreign exchange at National Bank of Canada in Toronto, referring to a rate increase at the July 20 central bank meeting. "The Canadian dollar is trading higher in conjunction with global risk parameters."
The Canadian currency strengthened 0.1 percent to C$1.0133 per U.S. dollar at 8:16 a.m. in Toronto, from C$1.0144 yesterday. One Canadian dollar buys 98.69 U.S. cents.