Canada’s Dollar Climbs as Inflation Increases; Bonds Fall

Canada’s dollar climbed to the strongest level since January and the nation’s bonds fell as a gauge of inflation exceeded the central bank’s target for the first time in two years, fueling bets the economy is picking up.

The loonie, as the currency is called, rose against most major counterparts as bankers’ acceptance contracts signaled investors were boosting wagers on higher interest rates. The currency fell to the weakest level since 2009 in March after Bank of Canada Governor Stephen Poloz told reporters he couldn’t rule out a rate cut if the economy worsened.