Canada’s dollar rallied to itsstrongest level in a week against its US counterpart, trackinggains in global equities and commodities, amid speculationslowing growth in China will spur more monetary stimulus.
The currency advanced against the majority of its most traded peers, heading for a weekly rise versus the greenback,before Bank of Canada policy makers meet next week to determineinterest rates.
The loonie, as the currency is nicknamed,touched the strongest level versus the euro since the sharedcurrency began trading in 1999.
The krona extended its advance versus the euro, reachingthe strongest level since December 2000.
“We like the commodity currencies, medium term,” Stephen Gallo, a foreign exchange strategist at Credit Agricole SA inLondon, said in a telephone interview.
We will also be following foreign developments, but the trend is likely to continue downward,” he added.. While widening to $5.83 billion in May from $4.96 billion a month earlier, the deficit was well below a Reuters poll forecast of $6.2 billion and compared with a $7.84 billion gap in May 2011. In the first five months, the deficit fell to $27.05 billion from $37.13 billion a year earlier.. Analysts said a rate cut was not expected immediately, but the bank could lower the upper limit of its rates corridor, the overnight lending rate, from 11.50 percent currently. The borrowing rate is at 5 percent and the one week repo policy rate at a record low of 5.75 percent.. The central bank governor said last week it may revise down its year end 6.5 percent inflation forecast in July, fuelling expectations that the bank will cut the lending rate soon.. Based on data released on Thursday, the Turkish Central Bank’s gross foreign exchange reserves rose to $84.799 billion in the week to July 6 from $83.05 billion a week earlier, according to Reuters calculations.. The yield on the March 5, 2014 benchmark bond was unchanged at 7.90 percent from Wednesday. On Tuesday, it touched a 10 month low of 7.89 percent.. “Turkey remains one of the countries with the highest bond yields.
LIMA, July 12 (Reuters) – Peru’s central bank held itsbenchmark interest rate steady at 4.25 percent forthe 14th straight month as expected on Thursday but said thecountry’s exports are weakening because of slower growth abroad.
Central Bank The European Central Bank is prepared to ease monetarypolicy, including cutting its deposit rate further, if theregion’s financial crisis worsens, according to a Medley GlobalAdvisors report obtained by Bloomberg News.
China’s growth slowed for a sixth quarter to the weakestpace since the global financial crisis, putting pressure onPremier Wen Jiabao to boost stimulus to secure a second halfeconomic rebound.
Gross domestic product expanded 7.6 percent last quarterfrom a year earlier, the National Bureau of Statistics saidtoday in Beijing.
The pace, a three year low, compares with an8.1 percent gain in the previous period and the 7.7 percentmedian forecast of economists.
The loonie has gained 2.5 percent this year among 10developed nation currencies in Bloomberg Correlation WeightedIndexes, with the US dollar adding 1.8 percent.
The real has lost 10.3percent against the US dollar over the past three months, themost among the 31 major currencies tracked by Bloomberg.
To contact the reporters on this story:Lindsey Rupp in New York at ;Chris Fournier in Halifax at To contact the editor responsible for this story:Dave Liedtka at.
Amy Unwin is a business journalist based in Sydney, Australia. Amy has a passion for financial markets and breaking news stories and loves writing about business news, stock market, and economic opinions that matters most to its audience. Amy spends a lot of time discovering and researching latest financial markets and industry news stories in order to make sure the latest and greatest stories are brought to you first on BigBoardNews.com.