WINNIPEG, MB, Nov 03, 2009 (Resource News International via COMTEX News Network) --

The Canadian dollar was stronger at midday Tuesday, as a move to record highs in gold provided some spillover support for the currency.

At 11:53 CST, the Canadian dollar was trading at 93.69 US cents or US$1=C$1.0674, which compares with 92.85 US cents or US$1=C$1.0770 early in the day, and Monday's North American close of 92.78 US cents or US$1=C$1.0778.

Gold prices were sharply higher on Tuesday following news that the International Monetary Fund sold gold to India's central bank. The gains in gold were supportive for the Canadian dollar, as the country is a major gold producer.

In addition, the US dollar was under pressure internationally, which accounted for some of the relative strength seen by the Canadian currency.

A slightly weaker tone in crude oil had limited the upside in the Canadian dollar, said analysts. However, crude oil was also moving higher by midsession.

There were no significant domestic economic releases on Tuesday. Employment data for October will be released on Friday.

At midday on Tuesday the Toronto Stock Exchange was stronger, up 65.58 points at 11:53 CST to sit at 10,943.93.

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