The Canadian dollar strengthened against the greenback on Wednesday, boosted by a rise in oil prices after strong Chinese factory activity lifted commodity markets. At 9:14 am EDT (1314 GMT), the Canadian dollar was trading up 0.3 percent at C$1.2926 to the greenback, or 77.36 US cents.
Data showed China's industrial output grew 7.2 percent in the first two months of the year compared with the year before, topping expectations and boosting optimism over the outlook for commodities. China is the world's second-largest economy and the world's largest importer of commodities. US crude prices were up 0.61 percent at $61.08 a barrel, while Brent crude added 0.37 percent to $64.88.
The Canadian dollar also benefited from US dollar softness after US retail sales unexpectedly dropped in February and as investors continued to be wary of the risk of a global trade war. The US dollar edged up 0.1 percent against a basket of major currencies. The loonie was able to recover some of Tuesday's nearly 1 percent decline after Bank of Canada Governor Stephen Poloz said a degree of untapped potential remains in the Canadian labor market, reinforcing expectations the central bank will take its time raising interest rates further.
Comments
Comments are closed for this article.