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 cfournier3@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net