Monday, July 9, 2007

Canada Dollar Reaches 30-Year High on Bets Central Bank to Increase Rates

(Bloomberg) -- Canada's dollar rose a fourth
straight day, reaching a 30-year high, as investors speculated
the Bank of Canada will raise interest rates tomorrow to cool
the economy.

The currency's rally is its longest since April. The
central bank will lift the overnight rate by a quarter-
percentage point to 4.5 percent tomorrow, according to 28 of 29
economists surveyed by Bloomberg News. Policy makers on May 29
said rate increases may be needed ``in the near term,'' citing
``excess demand'' in the world's eighth-biggest economy.


Read more at Bloomberg Currencies News

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