Canada Dollar Rises for Second Day as U.S. Stock Futures, Crude oil Gain

Canada’s dollar appreciated for a second day as U.S. equity futures advanced on speculation a referendum in Greece on its bailout may not take place, easing aversion to riskier assets.

The Canadian dollar rose against a majority of its most- traded counterparts this week. European Central Bank policy makers meet today to set interest rates amid a debt crisis in the region. Crude oil, Canada’s largest export, advanced.

“The Canadian dollar seems to be getting a little bit of a lift from positive equity futures,” said C.J. Gavsie, managing director for currency trading at Bank of Montreal, by phone from Toronto. “I don’t think there’s going to be a whole lot of resolution today and it’s going to continue to be choppy trade. This is all focused on the Greece situation.”

Canada’s currency strengthened 0.2 percent to C$1.0115 per U.S. dollar at 7:43 a.m. in Toronto. One Canadian dollar buys 98.86 U.S. cents.

Greek Prime Minister George Papandreou may withdraw his proposal for a referendum, an official with the ruling Pasok party said in Athens today. The official declined to be named.

Futures on the Standard & Poor’s 500 Index rose 0.5 percent.

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

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