Oct. 31 (Bloomberg) -- Canada's dollar rose to an all-time high against its U.S. counterpart as record crude oil prices and the Federal Reserve's cut in borrowing costs spurred a rally in currencies linked to commodity exports.
The difference between Canadian and U.S. benchmark interest rates was erased for the first time since March 2005 when the Fed reduced its target for overnight lending between banks by a quarter-percentage point to 4.5 percent. The U.S. dollar tumbled against more than a dozen major currencies as the Fed's cut fueled speculation that the global economy will weather an American housing slump.
"We can't call a top in the Canadian dollar,'' said Steve Butler, director of foreign exchange trading in Toronto at Scotia Capital Inc.
Canada's dollar rose 1.2 percent to $1.0604 at 4:55 p.m. in Toronto after touching $1.0617, the highest since the currency started floating in 1950. One U.S. dollar buys 94.31 Canadian cents. The Canadian currency's previous high of $1.0614 was reached in 1957.
TORONTO, Oct 31 (Reuters) - The Canadian dollar rose to its highest level in nearly 130 years against the U.S. dollar on Wednesday, hitting US$1.0617 as the greenback slide lower in the aftermath of a U.S. Federal reserve rate cut.
The domestic currency has rallied sharply in recent months, thanks to lofty commodity prices, a broadly weaker U.S. dollar, merger-related interest and a robust Canadian economy.
At about 4:15 p.m. (2015 GMT), each U.S. dollar was worth 94.19 Canadian cents.