BLBG: Canada Dollar at Almost 3-Month High Before Trade Report
The Canadian dollar touched its strongest level in almost three months against its U.S counterpart after China’s inflation quickened as its economy grew faster than projected.
The currency gained against most of its major peers ahead of trade data expected to show Canada’s current account deficit widened to C$600 million ($610 million) in November from C$169 million the month before, according to a Bloomberg survey of 21 economists. China’s consumer price index rose 2.5 percent in December from a year earlier more than the 2 percent gain in November, the National Bureau of Statistics said, as the nation’s economy probably grew 7.7 percent in 2012, exceeding the government target of 7.5 percent, an official said.
“There’s so much positive news out of China at the moment that it really is stronger just on that basis,” Eimear Daly, a currency market analyst at Monex Europe Ltd., said by phone from London. “It’s also obviously waiting for the international trade data.”
The loonie, as the Canadian dollar is nicknamed for the image of the aquatic bird on the C$1 coin, was little changed against its U.S. counterpart at 98.35 cents per U.S. dollar at 8:20 in Toronto. Earlier, it touched 98.26 cents per U.S. dollar, matching it’s strongest level since Oct. 18. One loonie buys $1.0168.
To contact the reporter on this story: Ari Altstedter in Toronto at aaltstedter@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
