Sharp reductions to unemployment benefit applications in the U.S. pushed up the monetary unit of Canada on foreign exchange markets on Thursday against the world's reserve currency, Bloomberg reports.
The Canadian dollar advanced against the majority of its 16 top rivals, also boosted by Canada registering an increase of 0.1 percent in its new home price index, according to data released by the nation's statistics agency. Also benefiting the loonie was a Bank of Japan governor nominee winning approval from the Japanese lower house of parliament.
"It's more generally risk-on," chief macro strategist David Tulk with Toronto-Dominion Bank TD Securities in Toronto told the news source on Thursday. The monetary unit of Canada "may not appreciate too dramatically from here, but we'll probably end up outperforming on the day."
For week ended March 9, unemployment claims fell by 10,000 to check in at 332,000, which is the lowest since the middle of this past January.
Reuters reports the final quarter of last year saw foreign debt drop in Canada, which was linked with the impact of the decreased value of the Canadian dollar.
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