Canada Dollar Gains From Almost 8-Month Low as Trade Gap Shrinks
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The Canadian dollar strengthened from an almost eight-month low against its U.S. counterpart as the nation recorded the smallest merchandise trade deficit in almost a year in January on exports of crude oil and bitumen.
The currency extended gains as the number of Americans who filed for unemployment benefits lat week declined to a six-week low, showing further improvement in the labor market of Canada’s largest trade partner. The so-called loonie fell yesterday after the Bank of Canada left the benchmark interest rate unchanged and said the current level will “remain appropriate for a period of time.”