BS: Canadian Dollar Rises as Gain in Stocks, Commodities Buoys Risk
By Allison Bennett
Aug. 22 (Bloomberg) -- The Canadian dollar advanced against the majority of its most-traded counterparts as a boost in global equities and commodities encouraged demand for higher-yielding assets.
The loonie, as the currency is sometimes known, climbed for a second day against the U.S. currency before a report tomorrow forecast by economists to show Canadian retail sales rose the most since November.
“The lack of financial sector blowup is the dominant non-development that is starting the week,” said David Watt, senior currency strategist at Royal Bank of Canada’s RBC Capital unit in Toronto. “The market’s comfortable. People are easing back into some risky securities.”
Canada’s currency appreciated 0.4 percent to 98.58 cents per U.S. dollar at 8:30 a.m. in Toronto, from 99.01 on Aug. 19. One Canadian dollar buys $1.0145.
Futures on the Standard & Poor’s 500 Index expiring in September rallied 1.6 percent. Futures on the S&P/TSX Composite Index gained 0.9 percent. Crude oil for October delivery jumped 0.9 percent to $83 a barrel in New York trading.
--Editors: Dennis Fitzgerald, 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
