Canada’s dollar rose from the lowest level in two weeks on speculation central banks will consider increasing monetary stimulus to spur economic growth, boosting higher-risk assets.
The currency earlier fell to the lowest since July 12 on concern Europe’s debt crisis is worsening. Commodities such as crude oil, Canada’s largest export, rose after European Central Bank council member Ewald Nowotny said there were arguments favoring giving the region’s rescue fund a banking license.
"There’s more positive sentiment," Steve Butler, managing director in Toronto at Scotiabank, said by e-mail. "It’s giving the market hope that there will be some policy action, either in the U.S. or Europe or both."
The loonie climbed 0.4% to $1.0184 per U.S. dollar shortly after 8 a.m. in Toronto. One Canadian dollar buys 98.18 cents U.S.
