BS: Canadian Dollar Rises as Investors Flee Dollar on Fed Concern
Sept. 24 (Bloomberg) -- Canada’s dollar gained for the first time in three days on speculation the Federal Reserve will reintroduce further easing measures, damping demand for the U.S. currency and increasing demand for assets linked to growth.
The loonie, as the currency is known, is poised to gain for a fourth straight week, adding 0.4 percent against the greenback. The Fed said Sept. 21 it’s “prepared to provide additional accommodation” to boost the U.S. economy.
“It’s a reflection of general dollar weakness,” said Shaun Osborne, chief currency strategist at Toronto-Dominion Bank’s TD Securities unit in Toronto. “We see good support from corporate Canada on the downside of dollar-Canadian dollar. There’s a lot of bargain-hunting from corporations trying to buy up a cheap U.S. dollar.”
The Canadian dollar rose 0.5 percent to C$1.0289 per U.S. dollar at 8:14 a.m. in New York, from C$1.0343 yesterday. It reached C$1.0192 Sept. 22, the strongest since Aug. 6.
--Editors: Dave Liedtka
To contact the reporter on this story: Catarina Saraiva in New York at asaraiva5@bloomberg.net.
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
