The Canadian dollar advanced for a fourth day, the longest streak since September, as crude oil climbed to a six-week high to lead gains in commodities.
Canada’s currency touched an almost four-year low against the euro as Italy’s economy stopped shrinking and European finance ministers met in an attempt to break a deadlock on a bank-failure bill. The currency strengthened from a three-year low reached versus its U.S. peer last week when the Bank of Canada warned of inflation below its target band, bolstering bets interest rates will stay low.
“It’s a combination of crude and other commodities — copper, as well — that’s probably giving a bit of a boost to the loonie,” said David Doyle, a strategist at Macquarie Capital Markets, said by phone from Toronto. “The loonie had become a little beaten up and a lot of people had piled onto that trade. That trade has run its course, for now.”
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