Canada’s dollar strengthened the most in almost a year as its U.S. counterpart weakened and traders speculated that the acquisition of coffee-shop chain Tim Hortons Inc. will increase demand for the local currency.
The loonie, as it is referred to because of the image of the waterfowl on the C$1 coin, was the biggest gainer among major currencies against the greenback. The Bloomberg Dollar Spot Index, which tracks the U.S. currency versus 10 leading global peers, fell after rising yesterday to the highest level since Feb. 3.
“We’re in a dynamic where the Canadian dollar should do well from the U.S. recovery and the U.S. dollar has lost its momentum a little bit,” Tom Fitzpatrick, Citigroup Inc.’s chief technical foreign-exchange strategist, said by telephone from New York. “There’s speculation about whether the Burger King purchase will result in the need for Canadian dollars.”