The Canadian dollar headed higher Tuesday ahead of a key speech from the Bank of Canada on foreign exchange rates.
The loonie was up 0.25 of a cent to 90.75 cents US.
Bank governor Stephen Poloz is expected to deliver a speech on the role of the floating exchange rate in Canada at 12:30 p.m. ET , followed by a press conference. Traders will be especially interested in what Poloz has to say about how the currency ties in with exports and the country’s continued economic recovery.
“The topic is not a new one, as it is a core piece of the BoC’s monetary framework and has been widely discussed by almost every governor,” said Camilla Sutton , chief FX strategist and managing director at Scotiabank Global Banking and Markets.
Meanwhile, the latest Canadian manufacturing sales figures showed that there are still signs that the recovery is faring as expected.
Statistics Canada said manufacturing sales rose 2.5 per cent to $53.7 billion in July, exceeding the previous record of $53.2 billion set in July 2008 .
The agency said the July gain was mainly due to higher sales in the transportation equipment and primary metals industries.
Economists had expected a gain of one per cent, according to Thomson Reuters .