Canadian Dollar Reaches Highest in One Month as Oil Halts Routby
The Canadian dollar reached its strongest level in more than a month as oil halted its price rout.
The currency strengthened against the U.S. dollar as the price for crude, Canada’s biggest export until last year, strengthened above $30 a barrel after its biggest two-day drop in seven years. The Bank of Canada held interest rates unchanged at its Jan. 20 meeting.
"It will be driven by oil and partly by what the central bank says about policy, because the market is obviously contemplating that another cut might be needed, but the central bank chose not to," said Daragh Maher, head of U.S. currency strategy for HSBC Holdings Plc in New York.
The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, gained 2 percent to C$1.3781 per U.S. dollar, at 5 p.m. in Toronto. One loonie buys 72.56 U.S. cents.