Loonie Hits 78 Cents

The Canadian dollar briefly trading above the 78-cent US level Wednesday for the first time since mid-January as traders bet that Canadian interest rates would continue to rise and remain higher than U.S. rates.

The loonie later slipped back and closed at 77.89 cents US, up 0.15 cents US. It traded as high as 78.03 cents US just before the noon hour.

Most economists are convinced the Bank of Canada will increase its key interest rate again when it holds its next policy setting meeting Oct. 19.