The Canadian dollar rose against all of its 16 most-traded peers, drawing strength from a government report pointing to a revival of economic growth.
The loonie, as the currency is nicknamed, erased a loss against its U.S. counterpart after wholesale sales rose at the fastest pace in more than two years in May, reaching a record on sales of fertilizer and food. The currency weakened yesterday after Bank of Canada Governor Stephen Poloz said the nation’s economy has significant slack and inflation remains muted, pushing back the potential for an interest-rate increase. Federal Reserve Chairman Ben S. Bernanke said curtailing the U.S. central bank’s asset purchases remains linked to indications of economic improvement.
“Wholesale sales suggest there could be a bit of an upside to the rather soft expectations people had for growth in the second quarter,” Greg T. Moore, a currency strategist at Toronto-Dominion Bank, said in a telephone interview.