On May 3 Canada’s dollar rose versus the greenback as U.S. stocks climbed, crude oil reached $87 a barrel and gold touched the highest level since December. The currency has been the second-best performer this year among the U.S. dollar’s 16 most-traded counterparts, trailing Mexico’s peso, on speculation Canada’s central bank will raise borrowing costs either at its next policy meeting on June 1 or the following one in July. The currency appreciated 0.7 percent to C$1.0107 per U.S. dollar at 4:12 p.m. in Toronto, extending its gain in 2010 to 4.2 percent. It closed at C$1.0179 on April 30. One Canadian dollar buys 98.95 U.S. cents. Canadian government bonds were little changed, with the 10- year yield down less than 1 basis point, or 0.01 percentage point, to 3.65 percent. The price of the 3.5 percent security maturing in June 2020 increased 3 cents to C$98.76. The loonie, as Canada’s currency is sometimes known because of the image of the aquatic bird on the C$1 coin, decreased last week on speculation gains on potential increases in interest rates were overdone. It reached parity with the greenback on April 6 for the first time in almost two years. Crude-Oil Gain Crude oil for June delivery climbed today as much as 1.2 percent to $87.15 a barrel on the New York Mercantile Exchange. Gold for immediate delivery advanced as much as 0.7 percent to $1,187.80 an ounce, the highest level since Dec. 4. Canada gets about half its export revenue from raw materials. The euro fell for the first time in four days against the U.S. dollar today, dropping 0.8 percent to $1.3192 on concern the European Union and International Monetary Fund’s 110 billion euro ($145 billion) bailout package for Greece will fail to win support from some of the region’s governments.
Read more at http://www.businessweek.com/news/2010-05-03/canada-s-dollar-appreciates-as-crude-oil-rises-equities-gain.html
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