The Canadian dollar extended its rally today, rising for fourth day against its US counterpart, as commodities, including crude oil, reversed the downward trend and rallied.
Crude oil reached the highest price in four days on speculation that flooding of the Mississippi River will disrupt refineries. Valero Energy Corp., the biggest US refiner, has already reduced operations at its Memphis plant to about 80 percent of capacity because of the flooding. Contract for delivery of crude in June rose 0.8 percent to $103.41 per barrel. Crude oil is the biggest export of Canada.
Other commodities, as well as stocks, were also recovering from the heavy losses of the previous week. Futures on gold gained 0.2 percent to $1,516.28 per ounce. The Standard & Poorâs 500 Index rose 0.8 percent. It looks like the safety play has run its course and now commodities and related currencies are again in favor.
USD/CAD traded at 0.9563 today as of 5:19 GMT after it dropped yesterday from 0.9615 to 0.9568. EUR/CAD traded near 1.3762 following the decline from 1.3813 to 1.3783. CAD/JPY traded at about 84.52 after it rose on the previous trading session from 83.49 to 84.48.
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