Skip to main content
Welcome to
super saver spring
offer ends april 20
save over $140
save over 85%
$0.99
per week for 24 weeks
Welcome to
super saver spring
$0.99
per week
for 24 weeks
// //

The Canadian dollar strengthened against its U.S. counterpart on Wednesday and was on track to advance for a fourth straight quarter as data showed faster-than-expected growth in the domestic economy.

The Canadian economy grew by 0.7 per cent in January, surpassing estimates for 0.5 per cent, largely on increases in wholesale trade and manufacturing, Statistics Canada said. A flash estimate pointed to a 0.5 per cent gain in February.

“The growth outlook for this year continues to brighten amid sizable fiscal stimulus, an ultra-accommodative central bank, and good news on the vaccines,” said Ryan Brecht, a senior economist at Action Economics.

Story continues below advertisement

Pfizer Inc has agreed to accelerate the delivery of its COVID-19 vaccine to Canada, and some doses of the Johnson & Johnson inoculation are due to arrive at the end of April, Canadian officials said on Tuesday.

The Canadian dollar was 0.3 per cent higher at 1.2597 to the greenback, or 79.38 U.S. cents, having recovered from its lowest intraday level in nearly three weeks on Tuesday at 1.2646.

For the month, the loonie was on track to gain 1.1 per cent, while it was also up 1.1 per cent since the start of the year, the strongest performance among G10 currencies.

The U.S. dollar notched a one-year high versus the yen and multi-month peaks with other currencies as investors bet that fiscal stimulus and aggressive vaccinations will help the United States lead a global pandemic recovery.

Canada sends about 75 per cent of its exports to the United States, including oil. U.S. crude prices were down 0.3 per cent at $60.35 a barrel on concerns about the market’s recovery after OPEC and its allies lowered its 2021 demand growth forecast, although strong Chinese factory activity lent some support.

Canadian government bond yields were higher across much of the curve, with the 10-year up 1.2 basis points at 1.546 per cent.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies