The monetary unit of Canada drove beyond parity with its southerly rival on Thursday, prompted by euro zone leaders' achievements with a debt deal and economic data from the U.S., according to published reports.
The loonie bounced higher following leaders' efforts in Brussels, where they crafted a deal to contain the sovereign debt crisis that has been tearing through the region's banks and public finance systems, Dow Jones Newswires reports. The Canadian dollar also climbed higher following news about the gross domestic product gaining in the U.S. during the third quarter as compared to the prior quarter.
"U.S. dollar offers can from time to time spill off into Canadian-dollar offers given the North American trade," foreign exchange managing director Jack Spitz with National Bank of Canada in Toronto told Bloomberg. "Moreover, the Bank of Canada and economic downgrades can’t be discounted."
Two-point-five percent for the third quarter was less than anticipated but higher than the first and second quarters' figures of 0.4 percent and 1.3 percent, respectively.
Despite gaining against the weakening greenback, the Canadian dollar dropped in value to 12 of 16 counterpart monetary units.
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