TORONTO, Aug 20: The Canadian dollar gained ground against the US currency on Friday, rebounding from the previous day’s weakness on resurgent oil prices. Domestic bond prices ended mixed in thin volumes.
The currency finished at C$1.2116 to the US dollar, or 82.54 US cents, up from C$1.2185 to the US dollar, or 82.07 US cents, at Thursday’s close.
With no significant Canadian or US economic data on Friday, oil’s rise back up to around $65 per barrel was the whole show, dragging the Canadian dollar higher against most other currencies.
Looking at the $2 rise in the price of crude today, it’s no real surprise to see dollar/Canada lower and the Canadian dollar itself performing well, said Jack Spitz, director of foreign exchange at National Bank of Canada.
Worries about crude supply have been largely driving the oil price increase.
June retail sales and July consumer price index data will be watched closely next week, but until then traders will likely continue to focus on commodities.—Reuters
