USD/CAD Drops Below 1.03 on Oil Difference

The Canadian dollar reached its highest level in a month as the discount on Canadian heavy oil compared with the U.S. benchmark narrowed from its widest in more than two months, boosting growth prospects.

Crude oil, the nation’s largest export, was little changed, remaining above $100 a barrel for a 16th straight day in New York. Average weekly earnings picked up speed in May with a 2.5 percent increase compared with a 2.2 percent increase the month before, Statistics Canada reported.

“If you look at the energy sector, which is a more important one for Canada, prices there are holding firm, if not doing relatively well,” said David Watt, chief economist in Toronto at the Canadian unit of HSBC Holdings Plc. “The market got a bit ahead of itself in pricing in Canadian dollar weakness.”


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