The Canadian dollar strengthened versus most of its major counterparts as stocks rose and a report showed retail sales increased more than forecast last month in the U.S., the nation’s largest trading partner.
The loonie, as the currency is nicknamed, briefly erased gains versus its U.S. peer as crude oil, the nation’s largest export, fell below $90 a barrel. Canada’s dollar advanced as existing home sales rose 2.5 percent in September from the previous month. U.S. retail sales gained 1.1 percent in September, following a revised 1.2 percent advance the previous month, Commerce Department figures showed today in Washington.
“It’s a strong currency and it remains favored by speculators, even though we’ve seen other risk assets like oil come down,†Adam Button, a currency analyst at forexlive.com in Montreal, said in a phone interview. “If stocks can rebound, the Canadian dollar will rebound right along with it. That’s the main driver now.â€
Canada’s currency rose 0.2 percent to 97.83 cents per U.S. dollar at 2:29 p.m. in Toronto. One Canadian dollar buys $1.0222.
The Standard and Poor’s 500 Index gained 0.6 percent. Crude oil futures were little changed at $91.89 a barrel in New York, after reaching as low as $89.79. The Standard & Poor’s GSCI Index of 24 raw materials lost 0.3 percent.
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Dean Popplewell