Canada’s dollar headed for its best weekly performance in 20 months on bets economic growth will fuel demand for the nation’s raw materials and as investors sought currencies backed by relatively strong balance sheets.
The currency, known as the loonie, declined for the first time in five days as crude oil, Canada’s largest export, pared a weekly advance. Shipments of oil, natural gas, metals, minerals, lumber and agriculture products account for about half the nation’s export revenue.
“Canada’s dollar has been on a tear,” Steve Butler, director of foreign-exchange trading in Toronto at Bank of Nova Scotia’s Scotia Capital, said in an e-mail. “I think it will continue to be an outperformer, but until we get through parity, it looks rangy against the U.S. dollar.”
The Canadian currency declined 0.1 percent to C$1.0309 per U.S. dollar at 8:17 a.m. in Toronto, compared with C$1.0297 yesterday, when it reached C$1.0288, the strongest since May 18. One Canadian dollar buys 97 U.S. cents. For the week the loonie has risen 3 percent, the biggest gain since the five days ended Oct. 9, 2009.
Crude oil for July fell as much as 1.3 percent, to $74.52 a barrel on the New York Mercantile Exchange. For the week the commodity has gained 5.2 percent.