The Canadian dollar and Norwegian crown held onto solid gains early on Tuesday, having rallied on a further rebound in oil prices which also led other commodity currencies higher as well.
With the U.S. dollar sidelined for the moment against the yen and euro, it was time for beaten-down currencies to regain some ground. The Canadian dollar rallied to C$1.2557 per USD, well off a near six-year low of C$1.2800.
The Norwegian crown climbed to 7.6142 per USD, up 2.3 percent in the past two sessions. It also rose against the euro, which plumbed a two-month low of 8.6292 crowns at one stage. Investors took profits on very bearish positions as oil prices rose strongly again, fueling talk that a seven-month rout has ended. Other commodity currencies like the Australian and New Zealand dollars were also swept off their lows.
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