By Chris Fournier
June 16 (Bloomberg) -- Canada’s currency rose from the lowest in three weeks as crude oil gained and the U.S. dollar weakened amid consideration by Brazil, Russia, India and China, the so-called BRIC countries, of steps that may lessen dependence on the greenback.
“Crude and commodities in general have been helping the Canadian dollar,” said Steve Butler, director of foreign- exchange trading in Toronto at Scotia Capital Inc., a unit of Canada’s third-largest bank. “Today there are some worries about the BRIC conference again discussing the U.S. dollar as the world’s reserve currency.”
The Canadian currency strengthened 0.8 percent to C$1.1239 per U.S. dollar at 8:22 a.m. in Toronto, from C$1.1334 yesterday, when it touched C$1.1377, the weakest since May 22. One Canadian dollar buys 88.98 U.S. cents.
Crude for July delivery advanced 2.5 percent to $72.36 a barrel on the New York Mercantile Exchange. Crude is Canada’s largest export.
The leaders of the BRIC countries, meeting today in the Ural Mountains city of Yekaterinburg, Russia, are considering buying each other’s bonds and swapping currencies to lessen dependence on the U.S. dollar, Russian President Dmitry Medvedev’s top economic adviser Arkady Dvorkovich told reporters before the group’s first summit.
To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net
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