Canada Dollar Gains to Strongest Since 2007 on Recovery Outlook

Canada's dollar rose to a three-year high versus its U.S. counterpart and approached the strongest level since 1950 as speculation the global economic recovery is quickening fueled investor appetite for higher-yielding assets.

The currency had the biggest weekly gain since November as U.S. employers added more jobs in March than forecast and Chinese manufacturing accelerated. Oil and gold gained, and the Canadian dollar strengthened the most versus the yen during a week since 2009. Canada’s employers added jobs for a sixth month, a report next week may show.

“Risk has been the theme of this week,” Brian Dolan, chief strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey. “Oil prices are holding firm, gold prices are holding firm.”

The Canadian dollar, nicknamed the loonie for the image of the aquatic bird on the C$1 coin, appreciated 1.8 percent, the most since the five days ended Nov. 5, to 96.32 cents per U.S. dollar yesterday in Toronto, from 98.05 cents on March 25. It touched 96.26 cents, the strongest level since Nov. 15, 2007. One Canadian dollar buys $1.0382.

The loonie’s strongest level since it was allowed to float in 1950, 90.58 cents, was reached on Nov. 7, 2007, as the collapse of the U.S. subprime-mortgage market disrupted financial markets and weakened the greenback. link......