Thursday, March 4, 2010

Canadian Dollar Extends Gains Ahead of Budget, Bonds Slip


The Canadian dollar extended gains against the U.S. currency for a fifth session on Thursday ahead of the federal budget later in the day.

At 9:45 a.m. (1445 GMT), the Canadian dollar was at C$1.0301 to the U.S. dollar, or 97.08 U.S. cents, up from C$1.0320 to the U.S. dollar, or 96.90 U.S. cents, at Wednesday’s close.

“It’s pretty much where we left things yesterday. It’s been a quiet morning,” said J.P. Blais, vice president of foreign exchange products at BMO Capital Markets.

He said there was risk that the Canadian dollar could weaken slightly on softer crude oil prices, an important Canadian export, while the market was also keeping an eye on developments in Europe.

“I think people are concerned about what’s happening in Europe, in the UK and the euro,” Blais said. Read more here.