BLBG:Canada Dollar Falls As Economy Decline Trims Rate View
Canada’s dollar appreciated against a majority of its most-traded counterparts as speculation economic growth in Asia and North America will counter stagnation in Europe boosted equities worldwide.
The currency touched the strongest level in almost a week against the greenback on gains in U.S. stock-index futures and crude oil, Canada’s largest export. Economists predict a report on June 1 will show the nation’s gross domestic product expanded in the first quarter for a third straight period.
“We seem to have been overwhelmed by a general trend that’s more positive for risk,” said Adam Cole, global head of foreign-exchange strategy at Royal Bank of Canada’s RBC Capital Markets unit in London. “You’ve got the contrast of equities everywhere being quite strongly up, with the exception of Spain, which is down quite heavily on concerns about quite how the government will go about recapitalizing the banks.”
Canada’s currency, nicknamed the loonie, gained against 10 of its 16 major peers. It touched C$1.0207 against the U.S. dollar, the strongest level since May 23, before trading little changed at C$1.0243 at 7:38 a.m. in Toronto. One Canadian dollar buys 97.63 U.S. cents.
To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
