WN: Loonie gains strength against U.S. dollar as commodity prices, sentiment improve
TORONTO - The Canadian dollar is gaining strength against the U.S. dollar as commodities rise and other global currencies also make strides against the greenback.
The loonie added 0.72 cents to 98.13 cents US in the early morning.
Commodities prices rose on reports that China's manufacturing boom accelerated in November.
The January crude contract was up $1.39 at US$85.50 a barrel on the New York Mercantile Exchange.
The December gold contract gained $7.50 to US$1393.60 an ounce on the Nymex while the December copper contract moved up six cents to US$3.88 per pound.
Investors have flocked to the U.S. dollar over the past week as fears about the spread of European debt.
Some of those jitters were eased Wednesday by a fairly strong Portuguese auction of one-year Treasury bills. Investors have feared that the country will be the next member of the European Union to require financial assistance from its neighbours.
Strong Chinese data also sent traders searching for other investments, supporting gains of international currencies, including the euro and the yen, against the U.S. dollar.
