Canada’s dollar rose for a third day as currencies from nations that are dependent on commodities for growth strengthened as prices of crude oil and equities rose. The loonie, as Canada’s dollar is sometimes known, gained against 14 of the 16 most-traded counterparts. It climbed the most versus the yen and the Swiss franc, traditional refuges during periods of risk aversion, as investors returned to higher-yielding assets. Oil is Canada’s largest export. “The Canadian dollar is stronger on the back of higher equities and crude,” said Jack Spitz, managing director of foreign exchange at National Bank of Canada in Toronto. “Canadian dollar crosses, notably Canadian dollar-Japanese yen, are posting decent gains.” Crosses refers to non-U.S. dollar trades. The Canadian currency appreciated 0.3 percent to 96.74 cents per U.S. dollar at 7:57 a.m. in Toronto, from 97.01 yesterday. The currency sank to 97.94 two days ago, the weakest level since March. One Canadian dollar buys $1.0337 U.S. cents. The loonie has appreciated 3.2 percent versus the greenback this year. It added 0.5 percent against the yen, and 0.5 percent versus the franc today. “We are in an environment of risk recovery,” said Sebastien Galy, senior foreign-exchange strategist at Societe Generale SA in London. “Risk on is good for oil and proxies such as the Canadian dollar.” National Bank predicts the Canadian dollar will depreciate to 99 cents versus the U.S. dollar by year-end. Futures on crude oil rose as much as 0.7 percent to $100.79 a barrel in New York, after dropping as low as $95.02 this week. Futures on the Standard & Poor’s 500 Index climbed 0.3 percent. To contact the reporter on this story: Chris Fournier in Halifax, Nova Scotia, at cfournier3@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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