The Canadian dollar got a bit of a boost Monday amid optimism that the controversial Keystone XL pipeline will get U.S. approval.
The loonie rose 0.58 of a cent to 90.36 cents U.S. early Monday before settling at 90.11 cents U.S. by the end of the trading day, an increase of 0.33 of a cent over the previous close.
The uptick came just days after the pipeline, which would boost shipments from the oilsands and give a lift to the Canadian economy, got a vote of confidence from the U.S. State Department.
The State Department said Friday the proposed TransCanada pipeline would produce less greenhouse gas emissions compared with transporting oil to the Gulf of Mexico by rail.
It also said the industry is driven by too many factors to pin everything on a single pipeline — an apparent rejection of the argument by environmental groups that stopping Keystone XL would thwart the oilsands.
With yet another obstacle removed for the Keystone XL pipeline, opponents were pressing forward with a lawsuit to challenge the project, public protests and an effort to inject the issue into the November elections.
Supporters and opponents both were quick to claim victories after the State Department report, which raised no major objections to the pipeline, was released.
The oil industry, some union groups and congressional Republicans called on the Obama administration to move forward with the project, while a coalition of landowners and environmentalists say there is still cause for denying a federal permit.
The project would ship 830,000 barrels of oil a day from Canada to Texas Gulf Coast refineries.
Meanwhile, farmers and ranchers in Nebraska who oppose the pipeline are planning to run for seats on a state board that regulates power stations that are needed along the project route.
National activists say they have recruited more than 75,000 volunteers willing to participate in civil disobedience, should President Barack Obama approve the Keystone project.
The project now goes to a 30-day comment period and a review by U.S. Secretary of State Kerry and other agencies.
Obama has 90 days to make the decision on the pipeline, but the White House on Friday disputed the notion that the report is headed to a fast approval. Oil began flowing last week through an Oklahoma-to-Texas section already approved by Obama.
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