Canadian Dollar Rallies As Current Account Surplus Hits 14-Year High

• The Canadian dollar rose to its highest level in more than five weeks against the greenback on Monday, as data showed Canada's current account surplus turning positive ahead of an expected interest rate hike this week by the Bank of Canada. 
• Canada's current account surplus was C$5.0 billion in the first quarter, swinging from a revised C$137 million deficit in the fourth quarter. It was the widest surplus since the second quarter of 2008. 
• "We expect the ongoing strength in commodities to support the current account in Q2 (second quarter), though offset by a deeper services deficit as travel recovers more fully," said Shelly Kaushik, an economist at BMO Capital Markets.
• The Canadian dollar was trading 0.5% higher at 1.2657 to the greenback, or 79.01 U.S. cents, after touching its strongest since April 22 at 1.2651. Gains for the loonie came as world share markets rose and the U.S. dollar lost ground against a basket of major currencies, with investors betting on a possible slowdown in U.S. monetary tightening.

(Source: Reuters)