Canadian Dollar Moves Higher with Crude Oil Prices

The Canadian dollar rose today versus all other 16 major currencies as concerns about supplies pushed crude oil, the main Canadian export, closer to the 30-month record.

May futures for crude oil delivery traded at $103.74 per barrel in New York after it earlier went up 0.3 percent to $105.76. The prices touched $106.95 on March 7, the highest level since September 2008. Crude has risen 7 percent this month on concerns that tensions in North Africa and Middle East will disrupt supplies.

The allied air strike at the forces of Libya’s leader Muammar al-Gaddafi refueled concerns that supply of oil from the country, that already has shrunk considerably, may fall further. At the same time, the increasing spending of the US consumers signals that demand will grow with the recovery of the economy.

USD/CAD traded at 0.9779 as of 23:15 GMT today after it fell earlier from 0.9810 to 0.9740. EUR/CAD went down from 1.3785 to 1.3768. CAD/JPY climbed from 82.89 to 83.54.

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