The Canadian dollar advanced today as the prices for crude oil rose and stocks gained after risk appetite reemerged on markets and traders again became interested in riskier assets.
Crude oil futures advanced as much as 3.8 percent to $97.59 per barrel in New York. The Standard & Poorâs 500 Index rose 3 percent, while the S&P/TSX Composite Index climbed 1.5 percent. The risk appetite appeared after Europe’s good data was followed by the positive report about the US housing market.
Analysts theorized that the Bank of Canada won’t rush to increase its interest rates even as the data shows that the economic recovery persists. It’s unlikely that Canada’s currency would significantly strengthen without higher rates, but the fact that the experts talk about a hike, not a rate reduction, is encouraging.
USD/CAD fell from 1.0297 to 1.0272 and EUR/CAD traded at about 1.3471 today as of 00:17 GMT. CAD/JPY rose from 75.59 to 75.70.
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