Friday, May 4, 2007

Canada's Dollar Reaches 8-Month High as Commodity Prices Rise

The Canadian dollar rose to an eight-
month high as the prices of some of the nation's commodities
exports climbed.

The Canadian currency also gained on speculation
international investors will purchase Canadian companies,
boosting demand for the currency. Bank of Canada Governor David
Dodge suggested this week that the central bank won't use
interest rates to slow the currency's appreciation after it
gained 5.5 percent against the U.S. dollar this year.

``Oil prices have stabilized, supporting the Canadian
dollar,'' said Matthew Strauss, a currency strategist at RBC
Capital Markets in Toronto. ``Speculation of several sizable
acquisition deals also pushed the Canadian dollar even higher.''

The Canadian dollar traded at 90.61 U.S. cents at 8:36 a.m.
in Toronto, from 90.28 U.S. cents yesterday, and reached the
highest since Sept. 1. One U.S. dollar buys C$1.1036.

To contact the reporter on this story:
Ye Xie in New York at

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