The Canadian dollar rose to its highest level in more than three years against the US dollar, as crude oil, the nation’s major export, climbed to 30-month high, lending support to the commodity-linked currency.
USD/CAD hit a low of 0.9576 during early U.S. trade on Thursday, before consolidating at 0.9578.
Ongoing unrest in the Middle East and North African nations pushed the Brent crude price above $122 a barrel earlier on Thursday, while crude oil for May delivery traded above $109 a barrel in New York.
Also, Statistics Canada said that building permits in Canada rose more-than-expected in February, increasing 9.9 percent against the markets’ expectations of 1.6 percent gain.
The euro also traded lower against the loonie, with the pair EUR/CAD losing 0.55 percent to hit 1.3691.The European Central Bank (ECB) on Thursday raised the interest rates by 25 points to 1.25 percent, its first since July 2008 to check the rising consumer prices in the region.
The Bank of Canada is expected to make an announcement on interest rate on Tuesday, while the consensus is key rates to remain unchanged.
Traders also look ahead for a strong Canadian employment data on Friday, which could further strengthen currency. Analysts’ expect the economy to added 30,000 jobs in March.