Futures traders reduced bets that the Canadian dollar will decline against its U.S. counterpart by the most on record amid speculation China will add monetary stimulus, boosting demand for raw materials and energy.
Speculators cut wagers on Canada’s dollar weakening against the greenback, known as net shorts, by 36,590 positions as of March 25 from a week earlier, the most in records going back to 1993, figures from the Washington-based Commodity Futures Trading Commission show. The shift reduced short positions to 33,215 contracts, from 69,805 on March 21.
The Canadian dollar, nicknamed the loonie for the image of the aquatic bird on the C$1 coin, declined 0.3 percent to C$1.1061 in Toronto trading after gaining earlier to C$1.1001, the strongest level since March 7. It climbed 1.5 percent for the week, the most since July, snapping three weeks of losses.
The Aussie dollar gained 1.8 percent this week, the most since the five days ended Feb. 7, to 92.47 U.S. cents. It touched 92.95 cents today, the highest since Nov. 21.
Chinese Premier Li Keqiang said he’s confident of keeping his nation’s growth in a “reasonable range.” The country’s manufacturing industry weakened for a fifth straight month, according to a preliminary measure for March released March 24.
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