Investing.com — on Thursday as oil prices surged and domestic retail sales data showed strength in May.
The loonie traded 0.1% higher at 1.4075 per U.S. dollar, or 71.05 U.S. cents, moving in a range of 1.4058 to 1.4099. It was the only Group of 10 currency to advance against the greenback.
Canadian retail sales increased 1% in May, meeting market expectations, with sales at gasoline stations and fuel vendors driving widespread gains. A preliminary estimate for June indicated sales rose 0.4%.
“Beyond the gas price increase, retail sales were solid in May, and a decent flash for June adds to the encouraging news,” said Shelly Kaushik, a senior economist at BMO Capital Markets. “The economy seemed to be building momentum in Q2, although additional challenges – more tariffs, extreme weather, and the renewed energy price shock – wait in the second half of the year.”
Oil prices, a key Canadian export, climbed 6.2% to $92.40 a barrel after Yemen’s Houthis reported attacks on two Saudi oil tankers in the Red Sea, raising concerns about global supply disruptions.
The rise in oil prices increased inflation concerns, lifting expectations that the Federal Reserve may raise interest rates. This pushed the U.S. dollar higher against a basket of major currencies.
Prime Minister Mark Carney told a meeting of provincial premiers that Canada will do whatever it takes to defend its workers, farmers and businesses in a trade war with the U.S.
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SOURCE LINK : Canadian dollar rises as oil prices jump on supply concerns By Investing.com
