TORONTO -- Canada`s currency surged versus the U.S. dollar on Thursday as higher commodity prices and a rebound in global equities helped reduce risk aversion.
The rise in the Canadian dollar, which rallied as high as C$1.1555 to the U.S. dollar, or 86.54 U.S. cents, lifted it comfortably off the seven-week low it tumbled to on Wednesday.
"We`ve had a turnaround in stocks and commodities overnight, and so that has basically pushed risk aversion levels lower as a result," said George Davis, chief technical strategist at RBC Capital Markets. "But with equity markets stronger we`ve seen the U.S. dollar generally weaker across the board."
Davis said the Canadian currency also benefited from some stop loss orders once it moved below the C$1.1615 area as traders in London took profits on the U.S. dollar.
At 8:30 a.m., the Canadian unit was at C$1.1580 to the U.S. dollar, or 86.36 U.S. cents, up from C$1.1676 to the U.S. dollar, or 85.65 U.S. cents, at Wednesday`s close.
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The rise in the Canadian dollar, which rallied as high as C$1.1555 to the U.S. dollar, or 86.54 U.S. cents, lifted it comfortably off the seven-week low it tumbled to on Wednesday.
"We`ve had a turnaround in stocks and commodities overnight, and so that has basically pushed risk aversion levels lower as a result," said George Davis, chief technical strategist at RBC Capital Markets. "But with equity markets stronger we`ve seen the U.S. dollar generally weaker across the board."
Davis said the Canadian currency also benefited from some stop loss orders once it moved below the C$1.1615 area as traders in London took profits on the U.S. dollar.
At 8:30 a.m., the Canadian unit was at C$1.1580 to the U.S. dollar, or 86.36 U.S. cents, up from C$1.1676 to the U.S. dollar, or 85.65 U.S. cents, at Wednesday`s close.
Read the full article here.