Canadian Dollar Rises

The Canadian dollar rose, touching an eight-week high, as oil reached a record above $127 per barrel, bolstering demand for the nation's commodity exports., Bloomberg 5/16/2008 6:41:46 AM

Commodities account for about half of Canada's exports. The Canadian dollar has gained 0.7 percent this week.

Canada's dollar rose 0.2 percent to 99.80 cents per U.S. dollar at 8:42 a.m. in Toronto, from 99.98 cents yesterday. One Canadian dollar buys $1.0019. The currency earlier touched 99.53 cents, the highest since March 19.

The currency is attracting investors as Canada's economy benefits from rising demand for copper, gold, wheat and oil from the U.S. and emerging economies such as India and China.

Canada is the world's largest producer of uranium and the second-biggest exporter of natural gas. The oil sands in Alberta contain the largest crude deposits outside the Middle East.

The Bank of Canada commodity price index surged to a record during the week ended May 14. The index reached 295.57, from 231.83 on Jan. 2.

The loonie, as the currency is known because of the image of the bird on the one-dollar coin, has traded near parity with its U.S. counterpart this year after climbing 17 percent in 2007. The Bank of Canada has cut borrowing costs four times since December to 3 percent to shield the economy from a U.S.- led slowdown. Canada ships about 80 percent of its exports to the U.S

Canadian Dollar Rises