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Canadian currency (Adam Korzekwa adam@korzekwa./iStockphoto)
Canadian currency (Adam Korzekwa adam@korzekwa./iStockphoto)

Dollar edges higher as G7 intervene on yen Add to ...

The Canadian dollar rose Friday amid a co-ordinated effort by leading industrial countries to stabilize financial markets by reining in the soaring Japanese yen .

The Group of Seven, including Canada, said they had agreed to make a concerted intervention to halt the yen's rise.

The loonie closed up 0.02 of a cent at $1.0141 (U.S.) amid lower oil prices.

The yen surged to record highs this week due to its status as a safe haven for investors - even when the emergency is in Japan - and because of the expected repatriation of the currency to provide funds for reconstruction.

But a more expensive yen was the last thing Japan needed after a massive earthquake and tsunami wiped out much of its industrial northeast and heavily damaged a nuclear power plant.

The loonie also rose amid data showing lower inflation. Statistics Canada said annual inflation edged down one-tenth of a point to 2.2 per cent in February.

Crude prices quickly backed off about $2.50 after Libya's foreign minister, Moussa Koussa, said the country was declaring an immediate ceasefire and stopping all military operations.

But the April crude contract on the New York Mercantile Exchange later recovered somewhat to close 35 cents lower at $101.07 a barrel amid uncertainty that Libya would actually follow through.

The ceasefire declaration came after the UN Security Council on Thursday authorized "all necessary measures" short of a ground offensive to stop the forces of Libyan leader Moammar Gadhafi from snuffing out the month-long rebel uprising.

Fierce fighting in Libya has damaged oil operations and cut most of the OPEC country's output of 1.6 million barrels a day.

Oil has also risen amid a violent crackdown on anti-government protesters in Bahrain, raising concerns about supply disruptions from the Persian Gulf.

The April gold contract on the Nymex was up $11.90 at $1,416.10 an ounce.

Copper prices were unchanged at $4.34 a pound after hopes for higher demand resulting from Japanese reconstruction had pushed the metal up 15 cents on Thursday.

 

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