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Jun 3, 2010 - Bloomberg: Canada Dollar Trades Near 2-Week High on Stocks, Rate Increase

By Chris Fournier June 3 (Bloomberg) -- Canada’s currency traded near the strongest level in more than two weeks as gains in crude oil, the nation’s largest export, and stock-index futures helped sustain momentum from an interest-rate increase two days ago. The Canadian dollar, known as the loonie, has gained 1.7 percent in the two sessions since Bank of Canada Governor Mark Carney raised the benchmark rate by a quarter percentage point to 0.5 percent. A government report tomorrow is expected to show the nation’s economy added jobs for a fifth month. “You’ve got the Bank of Canada that hiked rates earlier this week,” Matthew Perrier, director of foreign exchange at Bank of Montreal, said by phone from Toronto. “That’s certainly a fundamental positive for the currency. We continue to see strong numbers out of Canada and some stability in the rest of the world. That should continue to support the currency.” The Canadian dollar rose as much as 0.5 percent to $1.0334, the strongest level since May 18, before trading at C$1.0388 per U.S. dollar at 8:21 a.m. in Toronto, from C$1.0383 yesterday. One Canadian dollar buys 96.35 U.S. cents. Futures on the Standard and Poor’s 500 Index increased 0.3 percent and crude oil for July delivery gained 0.4 percent. The loonie tends to follow movements in stocks and commodities. --Editor: James Holloway, Dave Liedtka

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