Canada's Dollar Advances to One-Month High

Canadian dollar rose to the highest in a month on speculation climbing crude oil prices will boost the country's export revenue.

Commodities including oil and gold, account for half the country's exports. The Canadian currency has gained 18.9 percent this year as crude oil futures increased 57 percent.

The currency appreciated 0.5 percent to 98.08 Canadian cents per U.S. dollar at 4:05 p.m. in Toronto, from 98.52 cents yesterday. The currency touched 98.03 Canadian cents per U.S. dollar, the strongest since Nov. 26. One Canadian dollar buys $1.0197. The currency touched a record high of 90.58 cents per U.S. dollar on Nov. 7.

Crude oil rose above $96 a barrel in New York for the first time this month as a government report tomorrow may show a U.S. inventory decline and as Turkish planes bombed suspected Kurdish sites in northern Iraq.

Bank of Canada Governor David Dodge said on Dec. 21 that the Canadian dollar would be trading between 90 U.S. cents and $1 if its historical relationship with such items as commodity prices was preserved.

Canada, Bloomberg
12/26/2007 1:27:40 PM