Canada's dollar rose against its US counterpart on Thursday as a weak greenback and optimism Ireland may soon see a solution to its debt woes helped attract investors to higher-yielding currencies. The currency also got a bounce from domestic data that showed Canada's composite leading indicator rose 0.2 percent in October after dropping in September, while wholesale trade unexpectedly rose 0.4 percent in September.
Global stocks rebounded on Thursday, while the euro recovered ground against the dollar as uncertainty about the Irish debt crisis ebbed. Ireland's central bank chief said on Thursday he expected Dublin to receive tens of billions of euros in loans from European partners and the IMF to shore up its shattered banks though the government said it had made no request yet.
"We're just in a more positive tone. I think markets have calmed down overseas. Perhaps some sense that moving toward some resolution on the Irish sovereign risk issue has helped provide all currencies with a bit of a gain," said David Tulk, senior macro strategist at TD Securities. The Canadian dollar stood at C$1.0171 to the US dollar, or 98.32 US cents, up from Wednesday's finish at C$1.0243 to the US dollar, or 97.63 US cents.
Shortly after the domestic data on Thursday, the currency touched a session high of C$1.0155 to the US dollar, or 98.47 US cents. "The Canadian data pretty much across the board was a little bit stronger than many people expected," said Tulk. Also supportive of the currency's move higher was a bounce in the price of oil, a key Canadian export, which climbed toward $82 a barrel, while gold prices were also firmer.