Canada's dollar rose the most in three weeks as higher oil and natural gas prices boosted shares of Canadian energy companies, the biggest part of the country's stock market.
The currency is higher today against all 16 most active currencies tracked by Bloomberg, including the U.S. dollar. Crude oil rose above $60 a barrel, benefiting producers such as Suncor Energy Inc. and Petro Canada that account for about a quarter of the benchmark Standard & Poor's/TSX Composite Index.
"The Canadian dollar remains a commodity currency,'' said Reid Farrill, Director of Foreign Exchange at CIBC Worldmarket. "Oil prices are holding above $60 and the strength in the energy component of the TSX are part of the Canadian dollar story."'
The benchmark 10-year bond's yield, which moves in the opposite direction of the price, dropped 1 basis point to 3.89 percent. The price rose 4 cents to C$108.24, according to bond broker Mouvement Desjardins. Through yesterday the 10-year bond, which pays a 5 percent coupon and matures in June 2014, had its biggest three-day price decline since April 2004. A basis point is 0.01 percentage point.
Bloomberg.com