Canadian dollar gains as oil climbs, Clinton gets election boost

Mon Nov 7, 2016 4:38pm EST
 
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By Alastair Sharp

TORONTO (Reuters) - The Canadian dollar gained against a broadly stronger U.S. counterpart on Monday as oil prices rose after U.S. Democratic presidential nominee Hillary Clinton got a boost ahead of Tuesday's election.

The FBI said on Sunday that Clinton would not face criminal charges related to her use of a private e-mail server. A Clinton victory is seen as less of a threat to Canada's trade-intensive economy.

"We've seen a bit of a pop in crude oil prices, which is helping the Canadian dollar out a bit," said Shaun Osborne, chief currency strategist at Scotiabank. "I think it's a little bit of relief that maybe the election is not going to deliver the shock that had been feared last week."

U.S. Republican presidential candidate Donald Trump, who opinion polls showed gaining on Clinton recently, has said he would renegotiate or scrap the North American Free Trade Agreement if he is elected.

The Reuters/Ipsos States of the Nation project on Monday showed Clinton will a 90 percent chance of defeating Trump.

Oil rose, helped by a commitment from OPEC to stick to a deal to cut output, but prices remained more than $7 below last month's high due to persistent doubts over the feasibility of the group's plan. U.S. crude CLc1 prices settled up 1.9 percent at $44.89 a barrel. [O/R]

Canada is a major oil exporter.

The Canadian dollar CAD=D4 settled at C$1.3372 to the greenback, or 74.78 U.S. cents, stronger than Friday's close of C$1.3403, or 74.61 U.S. cents.   Continued...

 
A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto January 23, 2015.  REUTERS/Mark Blinch