BHP Billiton Bid for Potash Corp. Rejected, Making Loonie Fluctuate

The Canadian dollar today rose against its US counterpart as the stocks and crude oil climbed and fluctuated against the euro after the bid for Potash Corp. was rejected.

The BHP Billiton Ltd. planned the hostile takeover of the Potash Corp. of Saskatchewan Inc., the largest fertilizer company in the world. The anticipation of the money, which would be brought into the Canadian economy, improved Canada’s economic outlook and bolstered the loonie, as Canada’s currency is nicknamed. The Canadian government declined the proposed $40 billion, though, saying it wouldn’t be beneficial for the nation.

The MSCI World Index of equities jumped as much as 2.4 percent, the biggest increase in two months. Futures on crude oil, Canada’s key export, gained 2.1 percent to $86.47 per barrel in New York.

USD/CAD dropped from 1.0086 to 1.0021 today as of 19:32 GMT after it reached the intraday low of 1.0008. EUR/CAD traded at 1.4237, near its opening level of 1.4253.

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