Canadian Dollar Rallies Most Since 2010 on Stimulus

Canada’s dollar gained the most in two years against its U.S. peer this quarter after stimulus measures by governments worldwide fueled the advance of stocks and oil, spurring investor demand for higher-yielding assets.

The Canadian currency also advanced this month as the Federal Reserve announced a plan for open-ended debt buying to spur economic growth, which may debase the U.S. currency. Canadian government bonds dropped in the quarter as European Central Bank President Mario Draghi unveiled an unlimited debt-buying program, sapping demand for haven assets. Canadian employment growth is forecast to slow in September, according to a Bloomberg survey before the report next week.