BLBG: Canada Dollar Rises As Crude Oil Climbs Amid Rate Views
The Canadian dollar strengthened to a six-week high against its U.S. counterpart as oil, the nation’s largest export, gained amid speculation central banks in Europe and China may add monetary stimulus.
The loonie, as the currency is nicknamed, pared gains as U.S. stocks index futures were little changed. The European Central Bank is forecast to cut interest rates this week to stimulate demand. A state-owned newspaper in China said the time is ripe for a reduction in banks’ reserve-requirement ratios, which would indicate monetary stimulus.
“The Canadian dollar right here is looking pretty strong,” said Blake Jespersen, managing director of foreign exchange in Toronto at Bank of Montreal. “Oil is above $85 now, so oil has had a nice run.”
Canada’s currency gained 0.1 percent C$1.0164 per U.S. dollar at 8:32 a.m. in Toronto, after touching the strongest level since May 18. One Canadian dollar buys 98.39 U.S cents.
Crude oil futures climbed 2.3 percent to $85.71 a barrel in New York.
To contact the reporter on this story: Lindsey Rupp in New York at lrupp2@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
