BS: Canadian Dollar Climbs From Two-Week Low as Equities Advance
Canada’s dollar strengthened from the lowest in more than two weeks versus its U.S. counterpart as stocks climbed after yesterday’s selloff.
The currency is down this month against most of its major peers as concern European leaders meeting this week will fail to resolve the region’s debt crisis. Trading patterns suggest the Canadian currency is bound in about a half-cent range, according to Blake Jespersen at Bank of Montreal. (BMO)
“There’s a very slightly improved risk tone today,” Jespersen, managing director of foreign exchange institutional sales at Bank of Montreal, said by phone from Toronto. “The Canadian dollar does seem to find a fair amount of support at the 1.03 level. It’s now starting to run into resistance at 1.0250.” Support and resistance refer the lower and upper boundaries of a trading range, where automatic orders may be clustered.
Canada’s currency, nicknamed the loonie, strengthened 0.2 percent to C$1.0269 per U.S. dollar at 8:01 a.m. in Toronto. It fell to C$1.0318 yesterday, the lowest since June 12. One Canadian dollar buys 97.38 cents.
To contact the reporter on this story: Chris Fournier in Halifax at cfournier3@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
