Canada’s dollar reached its strongest point in a week versus its U.S. peer as the nation’s current- account deficit narrowed more than economists forecast in the first quarter on rising commodity exports.
The currency erased earlier losses against the greenback as a report showed the U.S. economy expanded less than estimated in the first quarter. Canada’s dollar gained as crude oil, the nation’s largest export, rebounded from a four-week low.
“We’ve seen broad-based U.S. dollar weakness,” Camilla Sutton, head of currency strategy at Bank of Nova Scotia, said by phone from Toronto. “We have a market that’s very long U.S. dollars and I think increasingly they’re becoming nervous with those positions.” A long position is a bet an asset will appreciate in value.
The loonie, as the Canadian dollar is nicknamed, rose 0.4% to C$1.0307 per U.S. dollar at 11:54 a.m. in Toronto, after touching C$1.0297 per U.S. dollar, its strongest since May 23. The currency reached C$1.0421 per U.S. dollar yesterday, its lowest level since June 5, 2012. One loonie buys 97.02 U.S. cents.