PHNO PESO CURRENCY EXCHANGE
MONDAY FEBRUARY 28, 2011
www.yahoo.com/finance
P1=US43.61,Can44.64,UK70.28,SA11.62,YEN 0.53, HK5.59, EUR60.05
Canadian dollar advances as volatile crude oil prices end week higher
By Malcolm Morrison, The Canadian Press | The Canadian Press –
Fri, 25 Feb, 2011 4:26 PM EST
a..
Canadian dollars, or loonies,
sits on their American counterparts
on Sept. 20, 2007 …
TORONTO - The Canadian dollar closed up against the greenback on Friday as oil prices ended the week higher amid reassurances that any shortfall in Libyan oil production because of massive anti-government protests would be recouped.
The currency rose 0.47 of a cent to a three-year high of 102.18 cents US ahead of the Bank of Canada's latest announcement on interest rates on Tuesday. Traders widely expect the bank to keep its key rate at one per cent.
The April crude contract on the New York Mercantile Exchange was 60 cents higher at US$97.88 a barrel.
That is down considerably from its spike to US$103 a barrel on Thursday as signs emerged that the crisis in Libya may have cut crude supplies by less that previously estimated.
Also, Saudi Arabia, the biggest crude producer in the Organization of Petroleum Exporting Countries, said that it would increase production to make up for any shortfalls due to unrest in Libya, if necessary.
Still, crude was up over eight per cent from a week ago amid investor concern the recent wave of unrest in the Middle East and North Africa could affect other oil-rich countries in the region.
"Rising oil prices are playing into several market fears," said Scotia Capital chief currency strategist Camilla Sutton.
"The first is how it will impact global inflation and how central banks will react to it. Certainly, speculation over the potential for a more hawkish tone from the European Central Bank at its March 3 meeting has helped to propel the euro higher. In addition, rising oil prices will weigh on the fragile U.S. recovery, which in turn could support an extended dovish stance from the Fed."
Copper prices continued to advance after falling sharply from a record high of US$4.63 on Feb. 14. Prices hit a low of US$4.28 earlier this week on worries that surging oil prices could potentially derail the global economic recovery.
On Friday, the March copper contract jumped 11 cents to US$4.44 a pound.
Gold prices faltered after investor nervousness about the Middle East had pushed the precious metal higher over the previous eight sessions. The April contract in New York lost $6.50 to US$1,409.30 an ounce.
Traders also took in data showing the American economy grew less than expected in the fourth quarter of 2010. Gross domestic product advanced 2.8 per cent, less than the 3.2 per cent pace originally reported.
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