The Canadian dollar CAD/USD-I closed higher Tuesday as nervousness over the failure so far of American lawmakers to raise the country's debt limit punished the greenback.
The loonie gained 0.34 of a cent to $1.0607 (U.S.) after earlier running as high as $1.063, its highest level since early November 2007.
The United States has a week to reach a deal to increase its $14.3-trillion debt limit or face not being able to pay its bills. That has led to fears the world's largest economy could default on its financial obligations and send shockwaves throughout world markets.
“The U.S. debt ceiling remains the markets' obsession,” observed Adam Cole, Global Head, FX Strategy RBC Dominion Securities Inc.
The weak U.S. dollar pushed oil prices CL-FT higher with the September contract on the New York Mercantile Exchange up 39 cents to $99.59 a barrel. A weaker greenback usually helps raise oil prices, which are denominated in dollars, as it makes oil less expensive for holders of other currencies.
Copper HG-FT prices also headed higher with the September contract ahead 7 cents to $4.48 a pound.
Investors looking for safety pushed gold GC-FT prices up from Monday's latest record close, up $4.60 to $1,616.80 an ounce.
