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Canadian Dollar Rallies to 3-Month High Against the U.S. Dollar

Written By Luke Burgess

Posted April 16, 2009


The Canadian dollar maintained a six-week rally against the U.S. dollar today as crude oil prices continued to show stability at $50 per barrel.

The petro-linked loonie traded at a 3-month high against the greenback today, moving as high as $0.83680 to the U.S. dollar.

The Canadian dollar climbed despite a recent report from the U.S. Energy Information Administration that showed an increase in U.S. commercial crude oil inventories of 5.6 million barrels for the week ended April 10th.

Meanwhile, an economic report on new motor vehicles sales in Canada had little impact on loonie. Statistics Canada said that sales of new motor vehicles in Canada declined by 2.2% in February compared to January. Economists were looking for a 2% decline in the month.

Over the past several weeks, the Canadian dollar has been the second best performer against the U.S. dollar, behind the British pound, among G10 currencies.

As a result, CurrencyShares Canadian Dollar ETF [NYSE: FXC] was trading at its highest levels today since January 9th.

– luke