By Chris Fournier
July 16 (Bloomberg) -- Canada’s dollar depreciated after outperforming all other Group of 10 currencies this week as U.S. stock-index futures and crude oil fell and before the nation’s central bank meets next week to set monetary policy.
The Canadian currency rose 4.6 percent against its U.S. counterpart from July 10 through yesterday as corporate earnings and a rebound in commodity prices sharpened investor appetite for risk. Speculation that New York-based commercial lender CIT Group Inc. is on the verge of bankruptcy may damp that enthusiasm.
“The CIT situation is helping a subtext of risk aversion make itself felt even during what has been a rather positive earnings season,” said Sacha Tihanyi, a currency strategist in Toronto at Scotia Capital Inc., a unit of Canada’s third-largest bank. “This is putting some pressure on” the Canadian dollar.
The currency weakened 0.5 percent to C$1.1186 per U.S. dollar at 8:08 a.m. in Toronto, from C$1.1126 yesterday, when it reached C$1.1118, the strongest since June 12. One Canadian dollar buys 89.40 U.S. cents.
Canada’s statistics agency is scheduled to report inflation data tomorrow at 7 a.m. in Ottawa.
To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net
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