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Loonie Rises to 80 U.S. Cents as Canada Booms

  • Canadian currency is the best performer among majors since May
  • Investors bet the Bank of Canada will raise rates again
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Inflation Paves Way for More Canada Rate Hikes

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The Canadian dollar strengthened to 80 U.S. cents for the first time in more than a year amid mounting evidence the economy is gathering speed and expectations the central bank will continue tightening monetary policy.

The loonie has advanced almost 10 percent from a 16-month low on May 4, making it the best-performing major currency tracked by Bloomberg over that period. The Bank of Canada raised borrowing costs for the first time in seven years on July 12, taking its main rate 25 basis points higher to 0.75 percent.