BS: Canada Dollar Gains Amid Signs of U.S. Manufacturing Recovery
By Allison Bennett
Dec. 16 (Bloomberg) -- Canada’s currency gained for a second day against the dollar amid evidence the economic recovery is gaining momentum in the U.S., the nation’s largest trading partner.
Canada’s dollar rose a day after reports showed manufacturing in the New York and Philadelphia regions increased more than expected last month. The currency was also supported as global equities gained and crude oil rebounded from a six- week low.
“Dollar-Canada has been boosted by better data out of the U.S.,” said Charles St-Arnaud, a foreign-exchange strategist at Nomura Holdings Inc. in New York. “Domestic demand in Canada will probably remain relatively weak in 2012, so any news that global demand and the demand for Canadian products is showing some sign of strength will be good news.”
The loonie appreciated 0.2 percent to C$1.0332 to 8:15 a.m. after reaching C$1.0424 on Dec. 14, the weakest since Nov. 28. One Canadian dollar buys 96.79 U.S. cents.
Futures on the Standard & Poor’s 500 Index advanced 0.3 percent, and Canada’s benchmark S&P/TSX Composite Index gained 0.5 percent. Crude-oil futures rose 0.8 percent to $94.20 a barrel in New York.
--Editor: Kenneth Pringle, Paul Cox
To contact the reporters 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
