Skip to main content

The Canadian dollar strengthened against its U.S. counterpart on Friday, adding to this week’s gains as oil prices rose and U.S. stocks climbed back to near record highs.

The S&P 500 moved within a per cent of September’s record closing high after the largest U.S. bank soothed worries that the first-quarter earnings season would pour cold water on Wall Street’s big rally back from last year’s slump.

Canada is a major exporter of commodities, including oil, so its currency tends to benefit from the positive signal higher stock prices send about the outlook for the global economy.

Story continues below advertisement

“On the back of (U.S.) dollar weakness and a better risk tone, the loonie is getting a little bit of a bid,” said Erik Nelson, a currency strategist at Wells Fargo.

The U.S. dollar declined against a basket of major currencies, while oil prices rose as involuntary supply cuts from Venezuela, Libya and Iran supported perceptions of a tightening market. U.S. crude oil futures settled 0.5 per cent higher at $63.89 a barrel.

At 3:58 p.m. (1958 GMT), the Canadian dollar was trading 0.4 per cent higher at 1.3329 to the greenback, or 75.02 U.S. cents. The currency, which was up 0.5 per cent for the week, traded in a range of 1.3313 to 1.3386.

The loonie made ground despite data showing Canadian home prices fell in March for the sixth straight month.

Data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed that speculators have cut their bearish bets on the Canadian dollar. As of April 9, net short positions had dipped to 43,202 contracts from 44,323 in the prior week.

Canadian government bond prices were lower across a steeper yield curve in sympathy with U.S. Treasuries.

The two-year fell 8.5 Canadian cents to yield 1.633 per cent and the 10-year was down 54 Canadian cents to yield 1.784 per cent, its highest yield since March 12.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
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

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter