Canadian Dollar Advances to Three-Week High as Crude Oil Rises

[Enivid]

Canada’s dollar strengthened to the highest level in more than three weeks as crude oil rose above $61 a barrel and investors speculated more corporate earnings will top estimates.

“The Canadian dollar is trading with a stronger tone,” said Shane Enright, a currency strategist in Toronto at CIBC World Markets Inc., a unit of the nation’s fifth-largest lender.

Canada’s currency climbed 1 percent to C$1.1394 per U.S. dollar at 10:08 a.m. in Toronto, from C$1.1505 yesterday. It touched C$1.1380, the strongest level since June 22. One Canadian dollar buys 87.77 U.S. cents.

The Canadian currency, known as the loonie, will rise to C$1.12 against the U.S. dollar by year-end, according to the median forecast in a Bloomberg News survey of 35 economists.

The loonie performed in line with other commodity-linked currencies today. The dollars of Australia and New Zealand rose 0.8 percent and 0.4 percent, respectively, against the greenback.

The Canadian dollar was the second-best performer today against its U.S. counterpart among the 16 most-active currencies tracked by Bloomberg, after capping six straight weekly losses on July 10. The decline, its longest losing streak since December 2007, came on concern a global economic recovery will be delayed.

From Bloomberg News.