The Canadian dollar advanced Thursday amid rising commodity prices while traders appeared to take in stride a downgrade of Spain's debt.
The loonie rose 0.19 of a cent to 102.16 cents US.
Standard & Poor's cut its rating on Spainâ€™s debt by two notches to BBB-minus late Wednesday, leaving the country on the verge of junk status, or non-investment grade.
The Spanish government has so far refused to tap a new European Central Bank bond-buying facility that has been largely designed to keep a lid on the country's borrowing rates. But market reaction was muted as some analysts think the downgrade will help push the government to finally request the help.
Also, "S&P had previously downgraded Spain in late April 2012 and had warned at the time that the risk of further downgrades were clear," observed Scotia Capital chief currency strategist Camilla Sutton.
Meanwhile, the commodity sensitive loonie found some support from rising prices for oil and metals.
Traders fear the civil war in Syria could grow into a wider regional conflict that could threaten oil supplies from Middle East producers. The Middle East and North Africa account for about a third of global oil production. Oil was up $1.30 to US$92.55 a barrel.
Read more Business News
- 3 bears put downPenticton / S. Okanagan - 11:01 am
- Stabbing - four injuredCanada - 6:43 am
- Backpack dropper arrestedWorld - 6:58 am
- Mass murder in CalgaryCanada
|QHR Technologies Inc||1.22||-0.05|
|Anavex Life Sciences||0.375||-0.005|
|Copper Mountain Mining||2.42||+0.10|
|Sunrise Resources Ltd||0.025||-0.005|
|Mission Ready Services||0.23||-0.02|
The Big Picture Valuation fears grip markets Growing concerns about the level of stock market valuations sparked a risk-off trade in global markets this week. Investors are worried that many companies...
Photo: ContributedFor many businesses this has been a tremendously difficult time since the 2008 crisis. Business fell off. Sales techniques that always worked, well… stopped working. Customers...
Many times when we are gripped by fear it can be one of two mental challenges that we can learn to overcome. Photo: ContributedThe Fear is completely imaginary. In this situation there may be no fact...