BUSINESS

Canadian Dollar Hits Highest Level In 2 Years

The country's economy is exceeding expectations.

09/01/2017 17:25 EDT | Updated 09/01/2017 17:25 EDT
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TORONTO — The Canadian dollar surged today, briefly cresting above 81 cents US, as expectations of a Bank of Canada interest rate hike increased.

The loonie was trading at an average price of 80.71 cents US, up 0.94 of a U.S. cent, its highest level since June 2015.

The dollar's sharp movement came as the U.S. reported slightly weak job growth data Friday and after Statistics Canada reported Thursday that domestic economic growth blew past forecasts in the second quarter.

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The Canadian dollar spiked by nearly a full cent in trading Friday.

On Bay Street, the Toronto Stock Exchange's S&P/TSX composite index fell 20.27 points to 15,191.60 in a broad-based decline that saw most sectors finish in the red, excluding base metals and energy.

In New York, the Dow Jones industrial average climbed 39.46 points to 21,987.56, the S&P 500 index gained 4.90 points to 2,476.55, and the Nasdaq composite index was up 6.67 points to 6,435.33.

In commodities, the October crude oil contract gained six cents to US$47.29 per barrel and the October natural gas contract increased three cents to US$3.07 per mmBTU.

The December gold contract was up $8.20 cents to US$1,330.40 an ounce and the December copper contract advanced two cents to US$3.12 a pound.

Canadian and U.S. financial markets are closed Monday for Labour Day.

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