The Canadian dollar hit its highest level in more than three years against a broadly weaker US dollar on Friday, marking its third weekly gain, as commodity prices rallied and jobs data provided some upbeat economic news. Though Canada surprisingly lost 1,500 jobs in March, a huge jump in full-time positions suggested solid economic growth and bolstered expectations the central bank will raise interest rates later this year, likely in July.
Surging oil and gold prices remained key drivers of the commodity-linked currency, as well as a broadly weaker greenback. The currency cut some of its gains however heading into the close after US stocks fell as high oil prices revived investor worries about inflation and the economic recovery. The Canadian dollar ended the North American session at C$0.9574 to the US dollar, or $1.0445, up from Thursday's close of C$0.9585 to the US dollar, or $1.0433. It rose for the ninth time in the past ten sessions and was up 0.7 percent for the week - its third weekly gain.
"Obviously, the upward trend in CAD is still quite strong. And it's not just Canada, we've seen a whole host of currencies reach new highs today and that just speaks to the broad US dollar move as opposed to being a CAD specific move."