Canadian dollar strengthens; most other currencies see little movement

Canadian dollar strengthens; most other currencies see little movement

Story link: Canadian dollar strengthens; most other currencies see little movement

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The summer doldrums have hit the currency markets as most currencies saw little movement on Tuesday.

Only the Canadian dollar seemed to move very much at all as it gained 0.3 percent on the US dollar to C$1.1981. The strength of the Canadian dollar was mostly spurred on by mergers and acquisitions that set the stage for inflows into Canada. China National Petroleum has said it will pay $3.9 billion to purchase Canadian company PetroKazakhstan, German firm TUI has bid $2.2 billion for CP Ships, and US company Kinder Morgan has offered $5.5 billion in cash and debt for natural gas distributor Terasen.

Elsewhere, the euro fell a fraction to $1.2210 in relation to the US dollar, although it had gone as high as $1.2255 earlier in the day. Those early gains for the euro were on sentiment that the worst is over for the eurozone economy.

The yen only moved a fraction against the US dollar, sterling, and the euro. The Japanese currency sat at ¥109.84 in relation to the US dollar, at ¥197.81 against sterling, and at ¥134.14 in relation to the euro. Most of the small losses to the yen came on profit-taking after recent gains.

Meanwhile, sterling remained about the same in relation to the euro at £0.6784 as analysts predicted little strengthening for the UK currency anytime soon.