Canada's dollar rebounded from a two-month low against the U.S. currency, as rising stock prices bolstered investor confidence in the U.S. economy, the biggest consumer of Canadian exports.
The Canadian dollar strengthened against 10 of the 16 most- traded currencies, gaining about 1.8 percent against the Swiss franc and 1.4 percent against the yen. Traders resumed buying high-yielding assets as U.S. stocks rose for a second day after JPMorgan Chase & Co. increased its bid for Bear Stearns Cos., reducing risks in financial markets. Canada's benchmark index advanced 2 percent.
``Stocks have shown us the way today,'' said Steve Butler, director of foreign exchange trading at Scotia Capital Inc. in Toronto. ``It's a feel-good factor that is helping the currency.''
Canada's dollar rose 0.2 percent to C$1.0208 per U.S. dollar in Toronto at 11:26 a.m. from C$1.0233 on March 21. Earlier it fell to C$1.0309, the lowest since Jan. 23. One Canadian dollar buys 97.97 U.S. cents.
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