Loonie closes above 80 cents US for first time since 1993

Last Updated Wed, 20 Oct 2004 16:12:56 EDT 

TORONTO - The Canadian dollar closed above 80 cents US for the first time in more than 11 years as the U.S. greenback showed more signs of weakness. 

The loonie rose 0.74 of a cent to close at 80.29 cents US. It hasn't closed that high since March 26, 1993. 

The rise in the dollar came a day after the Bank of Canada boosted its key overnight rate by a quarter of a percentage point to 2.50 per cent in a bid to cool off the Canadian economy. 

FROM Oct. 19, 2004: Bank of Canada raises interest rates 

The U.S. dollar weakened Wednesday against other major currencies amid concerns over the state of the U.S. economy and the country's massive trade and budget deficits. The euro was trading at $1.2582 US, up 0.0066 in late afternoon action on currency markets. 

That put the U.S. greenback at an eight-month low against the euro. 

The weakness in the U.S. dollar helped to push gold prices higher. Bullion futures were up $3.20 to $423.50 US an ounce.