Canada’s Dollar Posts Weekly Gain as Risk Appetite Increases

[Enivid]

Canada’s dollar strengthened on speculation the worst of the global recession may be over, spurring investors toward such riskier assets as stocks and commodity currencies.

The Canadian currency rose 0.9 percent since March 27, its third weekly advance in four, as U.S. job losses last month were near economists’ estimates. Existing home sales and a gauge of manufacturing showed unexpected increases. The MSCI World Index, a benchmark for 23 developed markets, gained 3.6 percent in the week. Crude oil closed above $52 a barrel.

“We’ve had somewhat very positive economic news and a very well-performing stock market,” said Fabian Eliasson, vice president of currency sales at Mizuho Corporate Bank Ltd. in New York. “That would suggest that the dollar weakens and loses its safe-haven status, and investors are moving into riskier, commodity assets such as Canada.”

The Canadian dollar, known as the loonie, rose 0.5 percent to C$1.2302 per U.S. dollar at 4:45 p.m. in Toronto from C$1.2376 yesterday. One Canadian dollar buys 81.29 U.S. cents.

From Bloomberg News.