Loonie climbs following early losses to dollar

Posted On: February 01, 2013

The monetary unit of Canada climbed against the U.S. dollar after initially losing ground during the first trading session of February, according to Bloomberg.

A government report prompted the Canadian dollar's rise on foreign exchange markets. It noted the U.S. labor market during the past two months has been strengthening. The U.S., in addition to hosting the globe's largest economy, also is the top partner for trade and commerce to Canada.

"The only upside was the revision higher for previous months and that's considered a positive for the Canadian dollar," head of currency strategy Camilla Sutton with Bank of Nova Scotia in Toronto told the news source on Friday. "We're still close to that range we've seen for a long time, with the Canadian dollar and U.S. dollar hovering around parity."

The loonie climbed back from earlier losses of 0.3 percent against the world's reserve currency, a drop that was prompted by losses to crude oil, the top export of the natural-resources-rich nation.

Reuters reports January job growth in the U.S. was modest but greater than reported during November and December. Also impacting the loonie's growth on Friday was the U.S. Federal Reserve lacking a drive to adjust positions on monetary policy.

Category: Industry News

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