Strong labor market news from April helped the Canadian dollar gain against the world's reserve currency on Friday, Bloomberg reports.
Calls for the Bank of Canada to increase interest rates grew louder as a result of the creation of 58,200 jobs last month, significantly more than the 10,000 that economists forecast, according to The Canadian Press. But the country's unemployment rate increased by 0.1 percentage point to settle at 7.2 percent.
"A strong jobs report continues to play into Canada as a good place to put your money on a relative basis and underscores the idea that the Bank of Canada is likely to maintain its bias for less accommodation," foreign exchange managing director Jack Spitz with National Bank of Canada in Toronto told Bloomberg. "Still, the global risk atmosphere is the primary driver in the currency."
Prior to the release of the jobs data, the loonie was losing value against the U.S. dollar as a consequence of data indicating the reduced pace of industrial production in China in April.
The monetary unit had been hovering about its lowest value in three months against the dollar.
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