BS: Canadian Dollar Rises as Bankers Pledge to Maintain Stimulus
The Canadian dollar rose the first time in nine days after the European Central Bank president joined other global central bankers in pledging that there will be no rush to end monetary stimulus.
The currency rose against the majority of its most-traded peers after Mario Draghi said the ECB “will stay accommodative for the foreseeable future,” two days after Federal Reserve Bank of Dallas President Richard Fisher said investors shouldn’t overreact to a plan to slow monetary stimulus outlined by Chairman Ben S. Bernanke last week. Mervyn King, governor of the Bank of England, told lawmakers yesterday in his country slowing of asset purchases is not imminent.
“All of these central bankers have been trying to say, look here, the Fed isn’t talking about tightening policy, it’s just talking about reducing the accommodation and policy will remain accommodative,” said Jane Foley, senior currency strategist at Rabobank International, by phone from London. “Canada dollar as a consequence is off its worst levels against the U.S. dollar, it’s off its worst levels yesterday. That said, the environment is clearly jittery.”
The loonie, as the Canadian dollar is nicknamed, rose 0.3 percent to C$1.0481 per U.S. dollar at 7:56 a.m. in Toronto. One loonie buys 95.41 U.S. cents. The loonie touched C$1.0556 per U.S. dollar June 24, the lowest level since October 2011.
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
