Canada’s dollar approached the strongest level in more than a week versus its U.S. counterpart as crude oil, the nation’s biggest export, and stocks rose amid a jump in risk appetite.
The Canadian currency dropped yesterday versus the greenback as investors sought safety amid concern political turmoil in Europe would intensify the region’s debt crisis. Appetite for higher-yielding assets increased today after a gauge of European services shrank less than first estimated.
“We’re really seeing it recapture some of the ground lost, and some of that could be in response to what we’re seeing,” Emanuella Enenajor, an economist at Canadian Imperial Bank of Commerce’s CIBC World Markets unit, said by phone from Toronto. “Oil prices look a bit firmer today, equity markets look a bit firmer, and you’re also seeing some of those fears from yesterday dissipating.”
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