USD/CAD below 1.0440 on China Economic Reforms

The Canadian dollar rose to the strongest level in more than a week as the outlook for the nation’s commodity exports improved with China’s pledge to expand economic freedoms.

The currency reached its high of the day against the U.S. dollar after a report showed total foreign investment in Canadian securities increased to the highest level in five months. Risk appetite gained after China’s leaders vowed to allow more private investment in state-controlled industries and expand farmers’ land rights as part of the biggest package of economic reforms since the 1990s.

“The decision that came out of China was generally viewed as positive for riskier assets, and that of course applies to the loonie as well,” David Doyle, a strategist at Macquarie Capital Markets, said by phone from Toronto.


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