BLBG: Canadian Dollar Advances to Two-Week High on Outlook for Growth
By Chris Fournier
Oct. 6 (Bloomberg) -- Canada’s currency touched the strongest level in more than two weeks against its U.S. counterpart as stocks and crude oil rose on speculation the global economic recovery may accelerate.
The Canadian dollar gained for a third day after Australia’s central bank unexpectedly raised interest rates and as the U.S currency weakened against all but one of its 16 most- traded counterparts, the pound.
“The U.S. dollar is falling -- with that, everything else seems to be rising against it,” said Steve Butler, director of foreign-exchange trading in Toronto at Scotia Capital Inc., a unit of Canada’s third-largest bank. “The market does look poised to try this year’s low for the U.S. dollar against the Canadian dollar, just below C$1.0600.”
The Canadian dollar gained 0.6 percent to C$1.0633 per U.S. dollar at 8:19 a.m. in Toronto, from C$1.0697 yesterday. It touched C$1.0613, the strongest level since it reached C$1.0592 on Sept. 17, an 11-month high. One Canadian dollar buys 94.05 U.S. cents.
The MSCI World, an equity benchmark index for 23 developed markets, rose 0.9 percent, and futures on the Standard & Poor’s 500 Index gained 0.8 percent. Crude oil for November delivery advanced 1.5 percent to $71.45 a barrel on the New York Mercantile Exchange.
