Canada’s Dollar Rises to Highest Since 1960 on Record Oil Price

Oct. 29 (Bloomberg) — Canada’s dollar touched the highest since 1960 on surging demand for the nation’s commodity exports, with oil reaching an all-time high.

The Canadian currency strengthened against 15 of 16 most- actively traded currencies. The Federal Reserve is forecast to cut borrowing costs on Oct. 31 to prevent the world’s largest economy from slipping into a recession, which would eliminate the U.S. interest-rate advantage over Canada.
“With oil breaching another record level, it comes as no surprise to see the Canadian dollar continuing to do well,” said Stephen Malyon, a currency strategist at Scotia Capital Inc. in Toronto.

The currency rose 0.6 percent to $1.0461 at 10:56 a.m. in Toronto, after touching $1.0466. It reached $1.0488 on March 30, 1960. One U.S. dollar buys 95.62 Canadian cents.

The price of oil advanced above $93 a barrel for the first time, extending this month’s gain to 16 percent, after Mexico shut a fifth of its production and the U.S. dollar fell to a record low against the euro. Gold rose to the highest since 1980. Copper, lead and nickel also gained. Commodities account for about half of Canada’s exports.

Canada’s economy is benefiting from the commodity boom, which has increased the government’s budget surplus and encouraged consumers to spend more.

Bloomberg