Canadian Dollar Strengthens as Chinese Exports Rise

The Canadian dollar rose to a three-week high against its U.S counterpart after China’s exports topped estimates, boosting speculation a strengthening economy will drive demand for Canada’s commodities.

The loonie, as the currency is nicknamed, briefly pared gains on signs the Canadian housing market was cooling faster than forecast. Bank of Canada Senior Deputy Governor Tiff Macklem said the “near-term” momentum of the country’s economy appears to be “softer” than projected, even as activity is forecast to pick up this year. Canada’s dollar fell the most in almost three months versus the euro after the region’s central bank held its interest-rate target unchanged.