BS: Canadian Dollar Gains for Second Day as Global Stocks Advance
June 14 (Bloomberg) -- Canada’s currency strengthened for a second day against the U.S. dollar as investors sought higher- yielding assets, sending global stocks higher.
The currency extended gains as retail sales in the U.S., Canada’s biggest trading partner, fell less than forecast in May. The Canadian dollar had the first back-to back daily gains versus its U.S. counterpart in more than three weeks.
“This week is really quiet in terms of Canadian data, so the Canadian dollar is really taking its cue from risk appetite,” said Kathy Lien, director of currency research at the online currency trader GFT Forex in New York.
The loonie, as Canada’s currency is sometimes known for the image of the aquatic bird on the C$1 coin, appreciated 0.5 percent to 97.16 cents per U.S. dollar at 8:38 a.m. in Toronto, from 97.61 cents yesterday. It last gained for more than one day in the three sessions ended May 19. One Canadian dollar buys $1.0292.
The MSCI World Index of stocks gained 0.6 percent, and futures on the Standard & Poor’s 500 Index climbed 1.1 percent.
Crude oil, Canada’s biggest export, fluctuated, trading up 0.2 percent to $97.51 a barrel in New York.
“Even though oil prices are back below $100 a barrel, in order for it to hurt the commodity currencies, we would need to see oil much closer to $90 a barrel,” Lien said.
Sales at U.S. retailers fell 0.2 percent in May as slumping demand for autos and electronics overshadowed gains among Internet merchants and restaurants, Commerce Department data showed. The median forecast in a Bloomberg News survey was for a 0.5 percent drop.
--Editors: Greg Storey, Paul Cox
To contact the reporter on this story: Allison Bennett in New York at abennett23@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
