BLBG:Canadian Dollar Fluctuates, Set for 10th Weekly Gain
Canada’s dollar fluctuated against its U.S. counterpart as global equities were little changed after appreciating more than 11 percent this year, indicating a rally in higher-risk assets may be taking a pause.
The currency headed for a 10th consecutive weekly advance versus the yen as crude oil, the nation’s biggest export, rose from March’s lowest level yesterday. Canada’s dollar is the best performer during the past month among 10 currencies tracked by Bloomberg Correlation-Weighted Indexes on speculation the U.S. economic recovery is firming.
“On crosses, we’re very positive on commodity currencies, particularly Canada,” said Geoffrey Kendrick, head of European currency strategy at Nomura International in London, in a telephone interview. “Canada is basically a high-beta play on U.S. growth. I’m surprised it hasn’t moved more quickly.” Crosses are trades with currencies other than the U.S. dollar and high-beta refers to an asset’s sensitivity to changes in underlying measures of risk appetite.
Canada’s currency, nicknamed the loonie, was little changed at 99.26 cents per U.S. dollar at 8:06 a.m. in Toronto. One Canadian dollar buys $1.0075. Against the yen it rose 0.3 percent to 84.51, extending its weekly rally to 1.5 percent.
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
