The Canadian dollar gained against the U.S. currency on Wednesday, still supported by the bid for Potash Corp, one of the country's biggest companies.
The Canadian dollar gained more than a penny against the greenback on Tuesday, boosted by a blockbuster $39 billion takeover bid for Potash Corp (POT.TO: Quote)(POT.N: Quote) and broader rise in appetite for riskier investments.
Foreign investors, anticipating that BHP's $130-a-share offer for Potash may become eventually richer, helped trigger the Canadian dollar's rally. The bid is expected to support the currency for the time being.
BHP said it is taking the offer directly to shareholders, bypassing Potash Corp's board which a day earlier called the bid "grossly inadequate".
At 8:25 a.m. (1425 GMT), the Canadian dollar was at C$1.0280 to the U.S. dollar, or 97.28 U.S. cents, not far from a session high at C$1.0273 to the U.S. dollar, or 97.34 U.S. cents. It was also up from Tuesday's finish at C$1.0329 to the U.S. dollar, or 96.81 U.S. cents.
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