Canadian Rally

The Canadian dollar hit an 18-month high of 74.68 U.S. cents on Aug. 28, amid mounting optimism that Canada will remain united. Quebec Premier Jacques Parizeau has launched a campaign to promote Quebec sovereignty before a key referendum expected this fall. But to build support, Parizeau has softened his definition of sovereignty. He's assuring Quebeckers that they could vote for "sovereignty," yet retain an "economic association" with Canada. Still, a recent poll suggested that voters would narrowly reject sovereignty if a vote were held now. That kicked off the dollar's surge.