Canada Dollar Gains Versus Euro Amid Political Turmoil

The Canadian dollar posted its biggest gain in three weeks against the euro amid a renewal of political turmoil in Spain and Italy.

The Canadian currency gained gain as Spanish Prime Minister Mariano Rajoy faced calls to resign after newspaper reports alleged he accepted illegal cash payments. A poll showed former Italy’s premier Silvio Berlusconi closed the gap on front-runner Pier Luigi Bersani even as he appeals a four-year prison sentence for tax fraud.

“Euro is off the highs which is contributing to some selling of euro/U.S., euro/Sterling as well as euro/Canada,” said Jack Spitz, managing director of foreign-exchange at National Bank of Canada, by phone from Toronto. “The market by and large is somewhat more neutral on the Canadian dollar now, rather than being overly bullish or bearish.”

The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1, rose 0.6 percent to C$1.351 per euro at 8:25 a.m. in Toronto, after strengthening to as much as C$1.3494. Against its U.S. counterpart, the Canadian currency was little changed at 99.63 cents per U.S. dollar. One loonie buys $1.0037.

To contact the reporter on this story: Ari Altstedter in Toronto at aaltstedter@bloomberg.net

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

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