Canada’s dollar rose from the weakest this month versus its U.S. counterpart as the discount the nation’s crude oil trades at compared with the American benchmark was at its lowest level in more than three months.
The Canadian currency gained for the first time in four days as China’s Cnooc Ltd. won approval to acquire the U.S. assets of Nexen Inc., the last regulatory hurdle to complete the $15.1 billion takeover of the Canadian oil producer. The currency’s gains came even after Bank of Canada Governor Mark Carney reiterated to lawmakers that the need to raise interest rates is “less imminent than previously anticipated.”
“The Western Canada Select-West Texas Intermediate spread, the narrowing of that spread, is helping the Canadian dollar today, that along with broad U.S. dollar selling,” Greg Moore, currency strategist at Toronto-Dominion Bank, said in a telephone interview from Toronto. “That differential is probably going to get a little more attention over the next little while.”
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