High oil prices boost commodity currencies, dollar rally stalls
HONG KONG: Higher commodity prices were supporting the Canadian and Australian dollars on Thursday, while a pause in this week’s rally in U.S. Treasury yields meant the dollar NSE 1.08 % also marked time.
The Aussie firmed 0.5% on Thursday extending advances the previous day. The Canadian dollar touched a touched a 10-week high on Wednesday with one U.S. dollar worth C$1.245, before paring gains, also supported by higher Canadian inflation figures.
“Overnight commodity prices were the big driver for commodity currencies, but you’ve still got the undertone that (COVID-19 variant) Omicron is not going to have a lasting detrimental impact on the global economic outlook,” said Kim Mundy, senior economist and currency strategist at Commonwealth Bank of Australia.
