Rate Hike Expected

The Canadian dollar jumped more than three-quarters of a cent on Tuesday as markets digested solid economic performance and an expected interest rate hike by the Bank of Canada.

The loonie gained 0.76 of a cent, closing at 77.69 cents US.

Many economists expect Canada's central bank will raise its key overnight rate – what banks charge each other for overnight loans– by one-quarter of a percentage point to 2.25 per cent.

The overnight rate is currently at a 44-year low, and a rate hike would be the first by the Bank of Canada in 17 months.

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