Canada Dollar Touches Almost Month’s High on European Debt Talks Optimism

Canada’s dollar touched almost the strongest level this month versus its U.S. counterpart on speculation leaders of France and Germany will forge a plan in the next several days to quell the region’s debt crisis.

The Canadian currency fluctuated as crude oil prices swung between gains and losses. U.S. housing starts rose more than forecast in September adding to evidence that Canada’s largest trade partner will avoid falling back into recession.

“Part of it is optimism -- and certainly it’s optimism because there’s nothing concrete -- that you’re going to get a quicker resolution on the issues that are plaguing Europe,” said Shane Enright, executive director at Canadian Imperial Bank of Commerce’s CIBC World Markets, by phone from Toronto, referring to reasons for Canadian dollar gains.

Canada’s currency was little changed at C$1.0135 per U.S. dollar at 12:19 a.m. in Toronto. It touched C$1.0085, almost the strongest since Sept. 21. One Canadian dollar buys 98.67 U.S. cents.

Futures on crude oil dropped 0.4 percent to $87.99 a barrel in New York after gaining as much as 1.3 percent. The MSCI World Index advanced for a second day, rising 0.4 percent.