TORONTO (Reuters) - The Canadian dollar eked out minor gains against its U.S. counterpart on Wednesday, helped by positive data from China that boosted a range of currencies seen as most sensitive to global growth.
The loonie, as Canada’s currency is colloquially known, was overshadowed by commodity-related cousins better placed to take advantage of Japanese stimulus and Chinese growth.
“The Canadian dollar is being left behind by the other commodity currencies, with good rallies in Aussie and Kiwi in particular,” said Adam Cole, global head of foreign exchange strategy at Royal Bank of Canada.
Cole said the Bank of Japan’s drastic monetary easing plan announced last week has pushed Japanese investors to seek yield elsewhere, which favors the higher interest rates offered in Australia and New Zealand.
The New Zealand currency hit its highest point against the loonie since mid-2005.
China, the world’s top buyer of copper, soy and iron ore, and the second-largest importer of crude oil after the United States, said imports of key commodities rebounded in March.
While that news is broadly positive for a country such as Canada that counts commodities among its main exports, the benefit is amplified for similar economies in closer proximity to the world’s second largest economy.
At 9:15 a.m. (1315 GMT) the Canadian dollar was trading at C$1.0156 to the greenback, or 98.46 U.S. cents, compared with C$1.0163, or 98.40 U.S. cents, at Tuesday’s North American close.
The price of Canadian government debt was flat to lower across the curve, with the two-year bond off half a Canadian cent to yield 1.000 percent, while the benchmark 10-year bond fell 16 Canadian cents to yield 1.789 percent.
Editing by Nick Zieminski