The Canadian dollar rose against the U.S. currency this morning as a rising oil price lent support to the commodity-linked currency.

 

The price of oil, a key Canadian export, rose above $68 a barrel, reversing earlier losses, [ID:nSIN510304], while its firmer tone helped Toronto's main stock index notch an opening gain after dropping more than 4 percent on Monday.

At 9:32 a.m. (1332 GMT), the Canadian currency was at C$1.1493 to the U.S. dollar, or 87.01 U.S. cents, up from C$1.1526 to the U.S. dollar, or 86.76 U.S. cents, at Monday's close.

The Canadian dollar fell to its lowest level against the greenback in nearly five weeks on Monday.

"Yesterday's story was a combination of Canadian equities getting hammered on the back of weaker commodities. So the fact that those are recovering a little bit today we're seeing a little bit of a retracement," said J.P. Blais, vice president foreign exchange products, at BMO Capital Markets.

 

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