The Canadian dollar climbed
against the U.S. currency on Tuesday, lifted by rising global
stocks and firm commodity prices as investors scooped up asset
perceived to be riskier.
World stocks .MIWD00000PUS rose and the greenback fell on
Tuesday as the Federal Reserve gets set to start its two-day
policy meeting. The Fed is likely to hold rates steady but
markets are still eager to know if the central bank will soon
unwind some stimulus programs due to a pickup in economic data.
[MKTS/GLOB]
"There's a return of risk appetite and with that commodity
prices back in favor," said Matthew Strauss, senior currency
strategist at RBC Capital Markets.
"If we look across the board oil, gold, base metal prices
are up. That is supporting the commodity-based currencies in
general."
The price of oil CLc1, a key Canadian export, climbed
above $70 a barrel, while gold and base metals prices pushed
higher on a weaker U.S. dollar. [O/R] [GOL/] [MET/L]
At 7:31 a.m. (1131 GMT), the Canadian dollar was at
C$1.0670 to the U.S. dollar, or 93.72 U.S. cents, up from
Monday's close of C$1.0775 to the U.S. dollar, or 92.81 U.S.
cents.
The rise in the Canadian dollar follows a mood of caution
that characterized Monday's trading ahead of the Fed meeting
and this week's G20 summit.
Most Canadian bond prices were little changed, looking for
direction from their U.S. counterparts [US/] where prices were
steady ahead of the Fed meeting and the start of a heavy week
of U.S. issuance.
