Canada’s Dollar Rises for 2nd Week on Central Bank Rate Stance

Canada’s dollar rose, touching the strongest level against the greenback in more than three years, as investors took Bank of Canada statements to mean the central bank may become more aggressive with interest-rate increases.

Gains by the currency, nicknamed the loonie, were tempered after a government report yesterday showed inflation didn’t increase as much as forecast, quelling speculation the central bank would raise interest rates as soon as September. The currency fell this week against 13 of its 16 most-traded counterparts before a report next week forecast to show the nation’s economy grew at a faster pace in May than April.