Wednesday saw the Canadian dollar end four consecutive trading sessions of losses to the world's reserve currency as demand increased for monetary units linked with commodities, Bloomberg reports.
Of the four days of losses for the loonie, the sharpest was Tuesday when the monetary unit slipped after central bank governor Mark Carney suggested his institution will gravitate toward reducing Canada's economic outlook. The nation's economy is supported by its exports of natural resources.
"The Bank of Canada, despite Carney's comments, has been very consistent that they feel a modest normalization of interest rates will be warranted in the future," senior currency strategist Michael Woolfolk with Bank of New York Mellon Corp. in New York told the news source. "People are also expecting Canada in coming days to report strong retail sales."
The loonie benefited from Moody's Investor Service leaving intact Spain's high-grade ranking, which also propelled risk aversion. Yields on Canadian government bonds fell to their lowest since this past April.
Gains to the housing sector of the U.S., with which Canada shares a strong commerce relationship, also benefited the Canadian dollar, according to Reuters.
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