Canadian dollar gains on most peers before EU summit

The Canadian dollar gained ground against most major currencies ahead of a European Union leaders meeting in Brussels to discuss the debt crisis in the region.

The currency climbed further against the euro while US stocks erasing gains meaning it lost ground on the greenback. Wolfgang Schaeuble, the German finance minister, said on Tuesday that European officials will do whatever they can to ensure Greece remains part of the euro and try to come up with ways of aiding economic expansion.

The Canadian dollar climbed by 0.6 per cent to C$1.2963 against the euro in Toronto, gaining ground for the second consecutive day. It fell by 0.5 per cent versus its US counterpart to C$1.0224 after climbing by up to 0.2 per cent in earlier trading. The Canadian dollar hit C$1.0247 on Tuesday, the lowest it’s been since 16 January.

The Standard & Poor’s 500 (SPX) Index had dropped by 0.2 per cent after having earlier rallied by one per cent. There was a rise of 0.4 per cent in the MSCI World Index of stocks after earlier gains of 1.3 per cent.

The Canadian dollar was supported after a report by the China Securities Journal that the country plans to speed up infrastructure project approvals and allocate construction funding quicker to boost economic growth.