Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

The commodity-linked Canadian dollar strengthened to a two-month high against its U.S. counterpart on Tuesday as steps to reopen the world economy boosted investor sentiment and some investors that were short the loonie covered their positions.

World shares forged ahead and commodity markets drove higher as investors disregarded Sino-U.S. tensions to focus on the easing of lockdowns and a potential coronavirus vaccine.

“You have all the components of CAD strength kicking-in, risk appetite, big dollar and oil,” said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets.

Story continues below advertisement

The U.S. dollar tumbled nearly 1 per cent against a basket of major currencies, while the price of oil, one of Canada’s major exports, was supported by growing confidence that producers are following through on commitments to cut supplies. U.S. crude

prices settled 3.3 per cent higher at $34.35 a barrel.

The Canadian dollar was trading 1.5 per cent higher at 1.3765 to the greenback, or 72.65 U.S. cents, its biggest gain since March 25. The currency touched its strongest intraday level since March 16 at 1.3757.

Some of the currency’s gains could have been due to short-covering, after the most recent data from the Commodity Futures Trading Commission showed that speculators have increased their bearish bets on the loonie to the most since June last year.

“When we broke through 1.3850 and 1.3800 that’s a lot of pain,” Anderson said. “I’m sure people are getting squeezed out of short CAD positions and will likely continue to exit those positions over the next few days.”

Bank of Canada Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins are due to appear before the Standing Senate Committee on National Finance at 5 p.m. (2100 GMT).

Canadian government bond yields were higher across a steeper yield curve. The 10-year yield rose 7.1 basis points to 0.560 per cent.

Story continues below advertisement

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.

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

Comments that violate our community guidelines will be removed.

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