By MarketsFarm
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.
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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.)
