Loonie Climbs for 2nd Day as Carney Raises Rates, Stocks Gain

Canada’s dollar strengthened for a second day, reversing an earlier decline, after the Bank of Canada raised interest rates for the second time in less than two months and stocks advanced.

Governor Mark Carney lifted the target rate for overnight loans between commercial banks by a quarter percentage point to 0.75 percent, a decision predicted by all 20 economists surveyed by Bloomberg News. Traders bought the loonie, as Canada’s currency is known, to cover bets that it would fall past C$1.06 against the greenback after the rate decision.