Loonie gains more than a cent as investors flock to commodity-based currencies, greenback sinks
The Canadian dollar touched its highest level in five weeks Tuesday as global investors flocked to commodity-based currencies.
The loonie (CAD/USD-I0.960.011.16%) strengthened more than a cent to 95.84 cents (U.S.) from Monday's close of 94.73 cents. Broad-based U.S. dollar selling also contributed to the currency's gains, strategists said.
“We're seeing the U.S. dollar weakness across the board, with all the commodity currencies doing fairly well,” said Camilla Sutton, currency strategist at Scotia Capital Inc. “We've gone back to investors seeking risk.”
Higher oil prices are fuelling optimism, and so is an earlier report showing Chinese manufacturers grew at the fastest rate in five years.
The Canadian dollar has risen 16.8 per cent this year.
