The Canadian dollar rose versus most major peers after Federal Reserve Chairman Ben S. Bernanke said the U.S. central bank won’t reduce the stimulus that’s spurred global risk appetite without a “preponderance of data” showing improvement in the economy of Canada’s biggest trade partner.
The currency remained higher as Bank of Canada Governor Stephen Poloz told Canadian lawmakers their nation’s economy still needs stimulus. The greenback narrowed its loss after minutes of the Fed’s October meeting showed policy makers said they might reduce bond purchases “in coming months” as the economy improves. Bernanke said yesterday in a speech the Fed will probably keep interest rates low long after ending monthly bond purchases.
“The Canadian dollar has kept pace with the U.S. dollar today, and that’s because the Fed was optimistic about the U.S. economy,” Adam Button, a currency analyst at forexlive.com, said by phone from Toronto. “Better growth in the U.S. will spill across the border to Canada.”
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