Canadaâ€™s dollar advanced against the majority of its 16 most-traded counterparts after the economy of the U.S., its largest trading partner, grew more than originally forecast in the second quarter.
The Canadian currency traded at almost a four-month high against the U.S. currency as riskier assets advanced after German Chancellor Angela Merkel said sheâ€™s convinced that Italyâ€™s â€œreformsâ€ will help reduce the interest rates that the nation pays for its bonds. Canadaâ€™s dollar was also supported as the Federal Reserve said the U.S. economy continued to expand â€œgraduallyâ€ in July.
The growth in U.S. gross domestic product â€œreinforces the view that Canada is likely to be the main beneficiary,â€ said Sebastien Galy, a senior foreign-exchange strategist at Societe Generale SA in New York. â€œThe foreign-exchange market is running ahead and buying the solid platinum loonie.â€
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