Skip to main content

The Globe and Mail

Canadian dollar jumps after string of losses

$10 dollar bills at par

CHRIS YOUNG/Chris Young/CP

The Canadian dollar closed higher Wednesday as oil prices surged and traders proved willing to take on more risk after European Commissioner Olli Rehn hinted at a possible recapitalization plan to shore up Europe's battered banks.

The loonie rose 1.34 cents to 96.14 cents (U.S.). The gain followed five straight days of losses that chopped up to 4 cents from the currency amid falling commodity prices and a flight to safety as traders bought up U.S. Treasurys.

Crude oil for November delivery surged $4.01 to $79.68. Oil broke a three-session losing streak after a weekly government supply report surprised markets by showing a steep decline in crude inventories, which indicated demand may be growing.

Story continues below advertisement

Hopes for the recapitalization plan were muted as Mr. Rehn gave no details of the proposals under discussion.

The rising uncertainty over a possible default by Greece have increased market volatility and destabilized the banking sector.

Recapitalizing euro zone banks could limit the damage to the financial system should the Greek government default.

Meanwhile, an announcement that ratings agency Moody's Investor Services had downgraded Italy's debt by three notches to A2 was taken in stride on financial markets. Moody's cited high debt, a weak global economy and political uncertainties.

Copper prices stabilized after three days of losses resulting from worries about slowing global economies with the December contract unchanged at $3.11 a pound. Copper is widely viewed as a barometer for the health of the overall global economy since it is used in electronics, homes and infrastructure.

Bullion prices advanced, with the December contract up $25.60 to $1,641.60 an ounce.

Report an error Licensing Options
Comments are closed

We have closed comments on this story for legal reasons. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Combined Shape Created with Sketch.

Globe Newsletters

Get a summary of news of the day

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.