BLBG: Canadian Currency Poised for Weekly Advance Against Major Peers as Refuge
Canada’s dollar was poised for a weekly advance versus most of its major counterparts on speculation the nation’s financial condition and sound banking system will attract investors during market turmoil.
The Canadian currency has appreciated 1.3 percent against the greenback since Sept. 9 in its first five-day gain in three weeks and rallied against Mexico’s peso and Brazil’s real. While Canada exports raw materials and benefits from global growth, it also has a smaller budget-deficit ratio, lower jobless rate and faster economic growth than most of its Group of Seven peers.
“The Canadian dollar is one of those which now, more than before, actually benefits from an uncertain risk environment,” said Henrik Gullberg, a currency strategist at Deutsche Bank AG, by phone from London. “If you look at fundamentals, they’re reasonably strong. There’s not the same uncertainty surrounding the Canadian system as we’ve seen in the euro zone.”
The Canadian currency declined 0.2 percent to 98.55 cents per U.S. dollar at 8:15 a.m. in Toronto, compared with 98.36 cents yesterday. One Canadian dollar buys $1.0147.
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
