BLBG: Canadian Dollar Strengthens as Chinese Exports Rise
The Canadian dollar rose against its U.S counterpart for the first time in three days after China’s exports topped estimates, boosting speculation a strengthening economy will drive demand for Canada’s commodities.
The loonie, as the currency is nicknamed, fell against the euro as the European Central Bank left its benchmark interest rate unchanged. China’s overseas sales rose 14.1 percent in December from a year earlier, almost triple the 5 percent gain forecast in a Bloomberg analyst survey, data showed today. Crude oil, Canada’s largest export, rose.
“I think doing nothing, keeping rates and spreads where they are is short-term bullish for the euro, history will tell you it should head north, and Canada should do better on the crosses as people will gravitate towards risk a little more,” Dean Popplewell, head analyst in Toronto at the online currency- trading firm Oanda Corp., said by phone from Toronto.
The Canadian dollar rose 0.2 percent against its U.S. counterpart to 98.56 cents per U.S. dollar at 8:07 a.m. in Toronto. It weakened 0.2 percent to C$1.2933 per euro. One loonie buys $1.0146.
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
