The Canadian dollar nearly one cent against the U.S. currency Monday as the price of crude oil rallied and global financial markets were upbeat on the first trading day of 2010.
Equities got a boost after surveys showed Chinese manufacturing activity expanded at the fastest rate on record in December and the recovery among European manufacturers, led by Britain, gathered pace.
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Markets were awaiting Institute for Supply Management's manufacturing index for December in the U.S., which analysts forecast would rise from the prior month.
Understanding the Canadian dollar: A four-part series
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"A lot of the focus this morning was on China and higher commodity prices, and a broadly weaker U.S. dollar are all helping the Canadian dollar and other commodity currencies," said Camilla Sutton, currency strategist at Scotia Capital.
Oil , a key Canadian export, climbed above $81 (U.S.) a barrel, the highest in more than two months, boosted in part by an oil dispute between Russia and Belarus.
The Canadian dollar's move higher extends the 2009 rally in which the Canadian dollar closed up 15.9 per cent against the greenback, rebounding from a near 19 per cent drop in 2008.
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