Canadian Dollar Rises on Equity Gain Before Bank of Canada Policy Decision
Canada’s dollar rose to its highest level this week before today’s Bank of Canada policy meeting as a gain in stock-index futures buoyed higher-yielding assets.
The currency, nicknamed the loonie, fell against the commodity-linked Australian dollar and Swedish krone on speculation the central bank may signal a possible reduction in the target lending rate later this year. All 27 economists in a Bloomberg News survey predict Bank of Canada Governor Mark Carney will keep the rate at 1 percent today.
“The Canadian dollar is still waiting for Carney to give clearer direction on rates,” said Firas Askari, head of currency trading in Toronto at Bank of Montreal’s BMO Capital Markets unit, by e-mail. “Equity futures look positive, so the Canadian dollar is doing OK.”
The Canadian currency appreciated 0.4 percent to 98.66 cents per U.S. dollar at 7:36 a.m. in Toronto, from 99.05 cents yesterday. It touched 98.51 cents, the strongest level since Sept. 2. One Canadian dollar purchases $1.0136.
To contact the reporter on this story: Chris Fournier in Halifax, Nova Scotia, at email@example.com
To contact the editor responsible for this story: Dave Liedtka at firstname.lastname@example.org
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.