The Canadian dollar rose against the majority of its 16 most-traded peers as crude oil, the country’s largest export, rose for a third day and traders bet the country would be less affected by falling metal prices.
The currency strengthened versus the dollars of its fellow commodity exporters Australia and South Africa on speculation Canada will be least hurt by recent weakness in metals. Copper, nickel and gold have all fallen this year after gold posted its biggest daily drop in 33 years last week. It fluctuated against its U.S. counterpart as existing home sales in the U.S. fell 0.6 percent last month.
“There was a big sell-off in commodities the last couple weeks and I think some of the other typically commodity-based currencies like the Aussie and the kiwi probably got hit more percentage wise than the Canadian dollar,” said David Bradley, director of foreign-exchange trading in Toronto at Scotia Capital Inc., a unit the Bank of Nova Scotia (BNS), using the nicknames for the Australian and New Zealand currencies. “It’s not the Canadian dollar, it’s just the other currencies are softer against the Canadian dollar. The Canadian dollar is doing nothing.”
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