AGL 38.54 Increased By ▲ 0.97 (2.58%)
AIRLINK 129.50 Decreased By ▼ -3.00 (-2.26%)
BOP 5.61 Decreased By ▼ -0.03 (-0.53%)
CNERGY 3.86 Increased By ▲ 0.09 (2.39%)
DCL 8.73 Decreased By ▼ -0.14 (-1.58%)
DFML 41.76 Increased By ▲ 0.76 (1.85%)
DGKC 88.30 Decreased By ▼ -1.86 (-2.06%)
FCCL 35.00 Decreased By ▼ -0.08 (-0.23%)
FFBL 67.35 Increased By ▲ 0.85 (1.28%)
FFL 10.61 Increased By ▲ 0.46 (4.53%)
HUBC 108.76 Increased By ▲ 2.36 (2.22%)
HUMNL 14.66 Increased By ▲ 1.26 (9.4%)
KEL 4.75 Decreased By ▼ -0.11 (-2.26%)
KOSM 6.95 Increased By ▲ 0.10 (1.46%)
MLCF 41.65 Decreased By ▼ -0.15 (-0.36%)
NBP 59.60 Increased By ▲ 1.02 (1.74%)
OGDC 183.00 Increased By ▲ 1.75 (0.97%)
PAEL 26.25 Increased By ▲ 0.55 (2.14%)
PIBTL 5.97 Increased By ▲ 0.14 (2.4%)
PPL 146.70 Decreased By ▼ -1.70 (-1.15%)
PRL 23.61 Increased By ▲ 0.39 (1.68%)
PTC 16.56 Increased By ▲ 1.32 (8.66%)
SEARL 68.30 Decreased By ▼ -0.49 (-0.71%)
TELE 7.23 Decreased By ▼ -0.01 (-0.14%)
TOMCL 35.95 Decreased By ▼ -0.05 (-0.14%)
TPLP 7.85 Increased By ▲ 0.45 (6.08%)
TREET 14.20 Decreased By ▼ -0.04 (-0.28%)
TRG 50.45 Decreased By ▼ -0.40 (-0.79%)
UNITY 26.75 Increased By ▲ 0.35 (1.33%)
WTL 1.21 No Change ▼ 0.00 (0%)
BR100 9,809 Increased By 41.1 (0.42%)
BR30 29,711 Increased By 311.1 (1.06%)
KSE100 92,406 Increased By 468.1 (0.51%)
KSE30 28,874 Increased By 129.9 (0.45%)
Markets

Canadian dollar rises by most in 11 months as commodities jump

  • Analysts expect Canada's employment report on Friday to show the economy shed 175,000 jobs in April as restrictions were tightened in some provinces to contain the coronavirus pandemic.
Published May 7, 2021

TORONTO: The Canadian dollar rose on Thursday to its highest level against its US counterpart in more than three and a half years as the greenback fell broadly and prices of some of the commodities Canada produces surged.

Aluminum approached levels not reached since 2018, bolstered by positive economic data and rising tensions between China and Australia, while copper jumped 1.9% and gold was up more than 1.5%.

"Commodities matter a fair deal to the Canadian economy," said Michael Goshko, corporate risk manager at Western Union Business Solutions. "When commodity prices strengthen, so too does the Canadian dollar."

The loonie was trading 1% higher at 1.2145 to the greenback, or 82.34 US cents, its biggest gain since June last year and its strongest level since September 2017.

The currency has been on a tear since the Bank of Canada last month signaled it could begin hiking interest rates in late 2022 and cut the pace of its bond purchases.

"You could be witnessing some market capitulation," Goshko said. "In the face of an employment report tomorrow that's supposed to be very negative, it's quite extraordinary to see it (the loonie) doing so well."

Analysts expect Canada's employment report on Friday to show the economy shed 175,000 jobs in April as restrictions were tightened in some provinces to contain the coronavirus pandemic.

Still, the Canadian dollar is expected to give back some of its recent gains over the coming year as the BoC's more hawkish stance is offset by a potential dialing back of the US Federal Reserve's asset purchase program, a Reuters poll showed.

The U.S. dollar on Thursday hit a three-day low against a basket of major currencies.

Canada's 10-year yield was little changed at 1.516%, near the middle of its range over the past two months.

Comments

Comments are closed.