Canadian Dollar Appreciates for Third Month on Rate Outlook
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Canada’s dollar gained for a third straight month on speculation the Bank of Canada will raise interest rates to contain inflation before the Federal Reserve.
The loonie, as the currency is nicknamed, reached the strongest level in more than three years against its U.S. counterpart, which fell this week after Fed Chairman Ben S. Bernanke said he was unsure when stimulus would unwind. The Canadian currency weakened earlier against most of its major counterparts as the nation’s economy unexpectedly shrank in February after four months of expansion.