WINNIPEG, May 26 (MarketsFarm) – The Canadian dollar was sharply stronger on Tuesday, climbing to two-month highs relative to its United States counterpart.
The Canadian dollar closed at US$0.7244 or US$1=C$1.3804, which compares with Monday’s North American close of US$0.7151 or C$1.3984.
Gains in crude oil and international equity markets provided the catalyst for the strength in the Canadian dollar, as investors showed some optimism over easing COVID-19 social distancing restrictions. General weakness in the U.S. dollar internationally was also supportive.
Chart-based positioning was another feature, as speculators booked profits on the large net-short position they had built up in the Canadian currency, according to analysts.
The TSX Composite Index was stronger, gaining 72.70 points, or 0.48 per cent, to close at 15,148.12 points.
Canada’s agricultural sector performed as follows:
Buhler Industries—————-dn $ 0.07 at $ 2.53
Linamar Corp.——————–up $ 1.10 at $ 35.56
Maple Leaf Foods—————–dn $ 0.44 at $ 25.65
Nutrien Ltd.———————dn $ 0.12 at $ 46.28
Ritchie Bros Auctioneers Inc.—-up $ 0.24 at $ 56.64
Rocky Mountain Dealerships Inc.–up $ 0.01 at $ 4.35
(All figures are in Canadian dollars.)