The Canadian dollar gained today as commodities, including crude oil, the main export of Canada, rallied amid the speculation that the global recovery is accelerating.
April delivery for crude oil rose 3.5 percent to $101.40 per barrel in New York on concerns that the tension in Middle East and North Africa will disrupt supplies of crude. The Thomson Reuters/Jefferies CRB Index of raw materials gained as much as 3.3 percent, the biggest intraday advance since August 2009. The rally of commodities is positive for the Canadian currency as about half of Canada’s export revenue comes from raw materials. The forecast that the report tomorrow will show an increase of the Canadian consumer prices also bolstered the loonie.
The finance minister of the Group of Seven will discuss tomorrow the crisis in Japan. The hope that other nations will help Japan helped to elevate the mood of investors and made them more willing to risk.
USD/CAD dropped from 0.9909 to 0.9853 today as of 20:54 GMT. CAD/JPY rose from 77.86 to 80.02.
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