Canada’s Dollar Edges Higher after Data Shows Retail Sales Increased

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Canada’s Dollar Edges Higher after Data Shows Retail Sales IncreasedCanada’s dollar rose to its highest level in nearly a week after data indicated that the country’s retail sales surged more than expected in May.

The loonie rallied by up to 0.3 percent to C$1.0711 per U.S. dollar, its highest level since July 18, before edging slightly lower to C$1.0724 as of 9:30 a.m. local time, still up 0.1 percent. The currency got a boost from a report released by Statistics Canada that showed that retail sales rose 0.7 percent to C$42 billion ($39.1 billion). This followed a report released last week that indicated that consumer prices in June surged the most in two years.

“The underlying momentum in the Canadian economy is solid, and the Canadian dollar is slowly becoming the favorite of traders once again,” Adam Button, a Montreal-based currency analyst at Forexlive.com, told Bloomberg.

Retail sales had increased 1.3 percent in May, exceeding market estimates.

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Meanwhile, the Indonesian rupiah rose to its highest level in two months while equities surged after former Jakarta governor Joko Widodo won the presidential elections. Widodo clinched 53.25 percent of the votes cast in the July 9 elections, beating his main rival Prabowo Subianto who garnered 46.85 percent.

The currency rallied 0.9 percent to 11,505 per dollar at the close of trade, its biggest gain since July 7. It had earlier touched 11,483, its strongest level since May 20.

The rupiah’s one-month implied volatility, which tracks the expected shifts in the exchange rate used to assign prices to options, fell 0.36 percentage point or 36 basis points, to steady at 9.57 percent. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com