Canada's Dollar Gains Most in a Month

Canada's dollar rose the most in more than a month as the price of crude oil reached a record high of more than $142 per barrel.

The Canadian dollar strengthened against 15 of the 16 most- active currencies. Commodities such as gold and crude oil account for 54 percent of the nation's exports. Alberta's oil sands hold the largest crude deposits outside the Middle East.

Canada's dollar increased 0.7 percent to C$1.0066 per U.S. dollar at 9:04 a.m. in Toronto, from C$1.0141 yesterday. It was the biggest gain since May 21. The currency has risen 1.9 percent this quarter and declined 0.8 percent this year against its U.S. counterpart. It earlier touched C$1.0049, the strongest since June 3. One Canadian dollar buys 99.33 U.S. cents.

The currency is poised to gain for a second consecutive week. It has appreciated 1 percent since June 20.

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. It touched a 2008 low of C$1.0379 on Jan. 22, and a high of 97.12 cents per U.S. dollar on Feb. 28.

Crude earlier increased as much as $2.62, or 1.9 percent, to $142.26 a barrel. Oil yesterday rose above $140 for the first time. Gold rose $10.70, or 1.2 percent, to $923.80 an ounce.

Canada, Bloomberg
6/27/2008 6:53:28 AM