Increased speculation about the central banks of the U.S. and Europe preparing to announce stimulus programs proved to be beneficial to the Canadian dollar on Tuesday as it drove toward recent highs against the U.S. dollar, according to Reuters.
The loonie drew minimal direction for the prospects of the separatist party in Quebec being voted back into power on Tuesday.
"We tested this level in the low 40s for the third time and it's holding again," foreign exchange trading director David Bradley with Scotiabank told Reuters. "It kind of feels to me as though the next time we have a test at that level it's going to break a little bit lower."
At one point in the morning during the Tuesday trading session, the Canadian dollar touched its top value in more than three months as the monetary unit also had a healthy performance against counterparts such as the common currency of the European Union and the Australian dollar.
Gains for the commodity complex also drove the loonie higher on Tuesday, The Canadian Press reports.
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