By Commodity News Service Canada
WINNIPEG, December 17 ‑ The Canadian dollar was trading at a stronger level compared to its US counterpart at 8:48 CST Monday, as optimism surrounding the US ‘fiscal cliff’, boosted its value, analysts said.
Traders were more willing to take on riskier assets, including the Canadian dollar, as news is that US lawmakers are getting closer to finding a solution for the US ‘fiscal cliff’.
At 8:48 CST Monday, the Canadian dollar was at US$1.0156 or US$=C$0.9846, which compares with Friday’s North American close of US$1.0137 or US$=C$0.9865.
Firm crude oil prices also helped to underpin the value of the Canadian dollar.
Strong domestic foreign investment data was also supportive for the Canadian currency. Statistics Canada reported foreign acquisition of Canadian debt securities strengthened for a fourth straight month, reaching C$12.5 billion in October.
Traders were looking ahead to Friday, when Statistics Canada will release their last data reports for 2012. The reports will highlight inflation and gross domestic product.
The TSX was down 8.02 points, or 0.065%, at 8:48 CST Monday morning to sit at 12,288.70.
