Canadian Dollar Reaches the Highest in 6 Weeks

Canada's dollar reached the highest in almost six weeks on increasing risk appetite after policy makers in the U.S., Canada's largest trading partner, said they won't allow mortgage lenders Freddie Mac and Fannie Mae to fail.

The Canadian dollar increased against 14 of the 16 most- active currencies and has strengthened 1.7 percent so far this month.

The Canadian currency rose 0.4 percent to C$1.0055 per U.S. dollar at 9:54 a.m. in Toronto, from C$1.0092 on July 11. It touched C$1.0044, the strongest since June 3. One Canadian dollar buys 99.45 U.S. cents.

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. 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.

The Bank of Canada will leave borrowing costs unchanged at 3 percent tomorrow, according to the median estimate of 21 economists in a Bloomberg News survey.

Canadian Dollar Reaches the Highest in 6 Weeks, Bloomberg
7/14/2008 7:33:26 AM