Canadian dollar advances amid positive tone from world markets, commodities

TORONTO – The Canadian dollar was making moderate gains Wednesday, buoyed by a generally positive tone from world markets andstronger commodity prices.

The loonie was up by 0.02 of a cent at 99.57 cents US.

Analysts were watching to see if the U.S. and international markets will continue on their paths of record highs, or if the lack of economic and corporate news will result in some pullback.

The Dow Jones industrial futures was up after it had a record-breaking close on Tuesday above 15,000. The S&P also was positive, remaining well about 1,600 points after pushing through that threshold for the first time on Friday.

Japan’s Nikkei 225 index rose 0.7 per cent to 14,285.69 to its highest close in almost five years Wednesday, and Germany’s DAX also appeared headed for another record close, up 0.2 per cent to 8,202.

The strength of stocks and the strong Canadian dollar in recent days has been a sign of heightened investor appetite for risk amid optimism that the U.S. economic recovery is gaining momentum.

Meanwhile, commodity prices appeared to be making up for losses earlier in the week.

The June crude contract on the New York Mercantile Exchange was up five cents at US$95.67 a barrel.

July copper was up eight cents to US$3.38 a pound while June gold bullion surged ahead $18.00 to US$1,466.80 an ounce.