Canada Dollar Rises

Canada's dollar rose to the highest in more than a week against its U.S. counterpart on optimism the U.S. economy has seen the worst of the credit crisis.

The Canadian dollar strengthened against 15 of the 16 major currencies today. The U.S. dollar also rallied against a dozen of the majors after Federal Reserve Chairman Ben S. Bernanke told Congress yesterday he doesn't expect the Fed will need to rescue another investment bank. An improving U.S. economic outlook will reduce pressure on the Bank of Canada to cut interest rates. The U.S. is Canada's largest export market.

The Canadian currency rose 0.3 percent to C$1.0133 per U.S. dollar at 8:20 a.m. in Toronto, from C$1.0163 yesterday. It touched C$1.0106, its highest since March 26. One Canadian dollar buys 98.69 U.S. cents.

The two-year Canadian bond's yield was little changed at 2.87 percent, close to the highest in more than a month. The price of the 3.75 percent security due June 2010 was C$101.82.

Canada Dollar Rises, Bloomberg
4/3/2008 6:29:42 AM