The Canadian dollar gained against the majority of its 16 most-traded peers as crude oil, the nation’s largest export, touched a one-month high after Cyprus agreed with creditors on a bailout.
Canada’s dollar pared gains against its U.S. counterpart after the Dutch finance minister said imposing losses on depositors and bondholders must be part of the bailout toolkit after such measures were taken to avoid default in Cyprus. Canada will report March 28 the economy grew 0.1 percent in January after contracting the month before, according to a Bloomberg survey.
“We’ve had a little bit of a relief rally on the fact we’re not going to get a major implosion on Cyprus today,” said Jeremy Stretch, head of foreign-exchange strategy at Canadian Imperial Bank of Commerce, by phone from London. “After nine- consecutive weeks of shorts being extended, I think there’s potential opportunity, if we do see some slightly firmer numbers — particularly in terms of the gross domestic product data on Thursday — for perhaps a little bit of a Canadian dollar recovery.” A short position is a bet an asset’s value will decrease.
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