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Canadian dollar closes above 78 cents US
! V0 b+ ~; I, m2 I: k# s, p6 dLast Updated Thu, 23 Sep 2004 16:20:41 EDT 2 B+ O) \) \# H& j! `$ I7 Q7 L! s
OTTAWA - The Canadian dollar put on another display of strength Thursday on speculation that Canadian interest rates would rise faster than those in the U.S. : V! J" q0 E/ Y8 D- x" R& P' J
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The loonie closed at 78.17 cents US in afternoon trading, up 0.28 cents US. : c& C* m: T0 G( u3 I
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Loonie approaches 11-year high
3 P! v3 K6 C: k3 _; rOn Wednesday, the dollar moved above the 78-cent level for the first time since mid-January.
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Comments Monday from Bank of Canada Governor David Dodge have led the markets to believe that further interest rate hikes are coming in October and perhaps again in December. ! g# v1 m" ^: h6 y
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On Tuesday, Statistics Canada reported record retail sales in July. That put more upward pressure on the loonie. 7 J) H1 b1 T5 w6 U' M
" W! n3 j( I6 [3 w: m! l% H9 `The dollar traded as high as 78.85 cents US on January 9 and closed that day at 78.67 cents US. That was the loonie's highest close since June 1993. 2 h) P' G6 y$ d3 c% R
0 x2 t% ?+ Q. \' X* q) n; U. SMany economists are predicting that the dollar will continue to rise against the U.S. greenback over the next year or two. Many forecast that the loonie will eventually be worth 80 to 83 cents US. |
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