Canadian Dollar Rebounds vs. Greenback on Stocks & Oil

The Canadian dollar gained versus the US dollar today, after reaching yesterday the lowest level in more than three months, as crude oil slowed its decline and stock advanced.

Futures for delivery of crude oil in August slumped as much as 1.7 percent to $89.61 per barrel in New York, before rebounding to $90.81 a barrel, resulting in the 0.4 percent loss. The Standard & Poor’s 500 Index gained 0.9 percent, the first advance in four days. The MSCI World Index climbed 0.5 percent.

The US and Canadian policy makers decreased their growth forecasts, reducing bets that the Bank of Canada will raise its interest rates next month. The negative expectations lead the Canadian currency to the potential monthly decline by 1.8 percent, following the drop by 2.4 percent in the previous month.

USD/CAD dropped to 0.9850 from 0.9858 today as of 1:51 GMT after it jumped yesterday to 0.9911, the highest level since March 17. EUR/CAD traded near 1.4093, following the advance on yesterday’s session from 1.4000 to 1.4086. CAD/JPY traded at 81.93 after it climbed yesterday from 81.32 to 81.97.

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