Canadian Dollar Rises as Crude Oil Reaches Two-Week High

The Canadian dollar jumped against the euro today as Ireland’s bailout failed to reduce the fears about the European sovereign-debt crisis. The currency also slightly rose versus the US dollar after crude oil reached the highest level in two weeks.

January futures on crude oil, the biggest Canada’s export, climbed as much as 2.4 percent to $85.78 per barrel after the prices rose to $85.83, the strongest intraday level since November 12th. The analysts estimated that Canada’s employers added 19,800 jobs in November, compared to the increase of 3,000 in the month before. The government reports will be released on December 3rd. The good news allowed the Canadian dollar to outperform other commodity currencies and the greenback.

The loonie, as Canada’s currency usually nicknamed for the image of the aquatic bird on the C$1 coin, rose versus the euro after the â‚¬85 billion ($112 billion) rescue package for Ireland failed to diminish concerns that Spain and Portugal would be contaminated by the debt problems. The cost of insuring debt from Spain and Portugal surged to record highs as the worries grew that the nations may require the bailout.

USD/CAD traded near its opening level of 1.0186 as of 22:03 GMT today after it climbed as high as 1.0257 and dropped to the intraday low of 1.0166. EUR/CAD dropped from 1.3519 to 1.3360.

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