The monetary unit of natural resource rich Canada performed strongly on Tuesday, following the path set by its top commodity, according to published reports.
Crude oil futures propelled the loonie to trump several counterpart currencies, according to Reuters. The loonie benefited from investors willing to overlook reports of a reduced pace of Chinese growth and the ongoing sovereign debt crisis that is sapping value from other currencies.
"Oil reaching almost $88 a barrel is a good sign … and I think the move yesterday in the Canadian dollar was a little overdone and with markets stronger this morning, the view was that the Canadian dollar had a ways to appreciate," foreign exchange sales director Blake Jespersen with BMO Capital Markets told Reuters.
At 3:49 p.m. on Tuesday, crude oil futures gained 1.12 percent, a $1.23 lift to $111.39 per barrel.
Also proving to be beneficial to the loonie was the Producer Price Index indicating the month of September had a 0.8 percent increase during the month of September, the Canadian Press reports, citing data from the U.S. Labor Department.
The PPI also heartened concerns about the U.S. economy, the world's largest, driving toward a double-dip recession.
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