Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Canadian dollar nears three-year high, underpinned by Fed's dovish stance

05/03/2021 | 04:11pm EDT
FILE PHOTO: A Canadian dollar coin, commonly known as the

TORONTO (Reuters) - The Canadian dollar rose against its U.S. counterpart on Monday, approaching a three-year high, supported by domestic data showing factory activity growing in April and the Federal Reserve's message that it is too early to dial back stimulus.

The U.S. economy is poised to grow at the fastest rate in decades but conditions are still not nearly strong enough for the Fed to consider pulling back its support, New York Fed Bank President John Williams said.

"The dovish comments really produce a lot of market confidence," said Darren Richardson, chief operating officer at Richardson International Currency Exchange Inc. "That free money gives the market room to expand, so that's going to help commodity currencies like the Canadian dollar."

The Fed's benchmark interest rate is currently set at near zero, as is the Bank of Canada's.

Last month's signal from Canada's central bank that it may begin raising interest rates before the Fed has lit a fire under the Canadian dollar, but past tightening cycles show faster liftoff may not be sustained, particularly if the loonie overshoots.

The Canadian dollar was trading 0.1% higher at 1.2272 to the greenback, or 81.49 U.S. cents, having traded in a range of 1.2266 to 1.2317. On Friday, it touched its strongest intraday level since February 2018 at 1.2262.

Canadian manufacturing activity grew for the 10th straight month in April as production and new orders climbed, with the pace easing only slightly from the previous month's record level, data showed.

Global equity markets were not far from a record

and the price of oil, one of Canada's major exports, settled 1.4% higher at $64.49 a barrel.

The U.S. dollar fell against a basket of currencies as Treasury yields retreated. Canada's 10-year yield fell 1.6 basis points to 1.530%.

(Reporting by Fergal Smith; Editing by Jonathan Oatis and Peter Cooney)

By Fergal Smith

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) 0.73% 0.77796 Delayed Quote.0.49%
BRITISH POUND / US DOLLAR (GBP/USD) 0.34% 1.40928 Delayed Quote.2.84%
EURO / CANADIAN DOLLAR (EUR/CAD) -0.01% 1.46966 Delayed Quote.-5.79%
EURO / US DOLLAR (EUR/USD) 0.57% 1.21451 Delayed Quote.-1.12%
INDIAN RUPEE / US DOLLAR (INR/USD) 0.00% 0.013655 Delayed Quote.-0.67%
Latest news "Economy & Forex"
05:55pTENCENT MUSIC ENTERTAINMENT GROUP : Profits ofá9 centsáper share anticipated foráfirst quarter
05:49pU.S. tariff review considers commodity shortages, inflation -official
05:36pBANCO BILBAO VIZCAYA ARGENTARIA S Aá : Fed approves acquisition of BBVA's U.S. banking arm by PNC
05:30pUtilities Up On Cyclical Bias -- Utilities Roundup
05:24pTech Up As Investors Rotate Back Into Sector -- Tech Roundup
05:21pFinancials Up As Inflation Scare Subsides -- Financials Roundup
05:19pConsumer Cos Up After Mixed Retail Sales Data -- Consumer Roundup
05:16pU.S. payments startup Marqeta reveals revenue doubling in IPO filing
05:14pHealth Care Up Amid Cyclical Bias -- Health Care Roundup
05:12pTSX rises 1.21% toá19,366.69
Latest news "Economy & Forex"