Canadian Dollar Gains as Crude Oil Rises

The Canadian dollar went up as the renewed concern that the tensions in Libya, as well as in the other countries of the region, will disrupt supplies of crude oil bolstered the commodity.

The allied air strikes in Libya can prevent the country from exporting oil. April delivery for crude rose as much as 2.3 percent to $103.35 per barrel in New York. Crude oil is the main Canadian export.

The Canadian currency also rallied against the Japanese yen for the third straight session on the speculation that the specialists will able to contain the radiation hazard from the damaged Fukushima Dai-Ichi nuclear plant. The optimism not only weakened the yen, but also boosted commodities and commodity currencies, including the loonie. The Reuters/Jefferies CRB Index of raw materials rose 0.6 percent. The Standard & Poor’s 500 Index advanced 1.5 percent, while the MSCI World Index of equities went up 1.6 percent.

USD/CAD fell from 0.9853 to 0.9780 on the previous trading session and traded at about 0.9782 as of 00:40 GMT today. EUR/CAD dropped from 1.3968 to 1.3905 yesterday and traded near 1.3913 today. CAD/JPY traded today at 82.79 after surging from 82.02 to 82.91 yesterday.

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