Canadian Dollar Rises to 13-Month High as Fed Adds Stimulus

Canada’s dollar strengthened to a 13-month high versus its U.S. counterpart after the Federal Reserve announced a third round of stimulus measures to spur economic growth in the nation’s largest trading partner.

The currency gained against 13 its 16 most-traded counterparts as the Fed said it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month, expanded its guidance on interest rates into 2015 and pledged to keep monetary policy accommodative even when the economy strengthens. The debt purchases raised concern that the money added to the U.S. economy will erode the value of the greenback.