Loonie shrugs of oil losses in slight climb against greenback

The value of the Canadian dollar edged higher on Tuesday despite oil prices and other tradables on the commodity complex losing value, according to The Canadian Press.

Waning optimism for the Spanish bank bailout approved over the weekend is likely to impact the asset considered more risky. One economist noted the past 60 days have been rough on currencies linked with commodities, such as the Canadian dollar.

"Commodity currencies are generally outperforming, as they’ve been hit hard over the past two months and look a little more attractive around these levels," senior economist Benjamin Reitzes with BMO Capital Markets told the news source. "Of course, that all depends on what happens in Europe. This weekend’s bailout for Spain’s banks has done little to calm market fears."

Concerns for Spain circle around whether the 100 billion in euros that finance ministers in the 17-nation bloc approved over the weekend will merely augment the sizable debt load currently carried by the nation. Another risk is that Spain might end up pursuing its own sovereign bailout as have Ireland, Portugal and, on two occasions, Greece.

Greece is preparing for a second round of elections this Sunday after early May elections did not produce a clear victor, according to Reuters.