Canada’s dollar rose to a three-year high versus its U.S. counterpart and approached the strongest level since 1950 as speculation the global economic recovery is quickening fueled investor appetite for higher-yielding assets.
The euro slumped for a sixth week, the longest stretch of losses versus the dollar since 2010, as the stripping by France’s top credit rating by Standard & Poor’s magnified concern the region’s financial turmoil will intensify.
The yen and franc gained against most major counterparts, with the Swiss currency touching a record high against the dollar, as a drop in commodities and stocks damped appetite for higher-yielding assets.
The euro touched a five-week low versus the yen and dollar amid bets the European Central Bank will have to buy more European government debt as confidence wanes in the region’s ability to deal with its debt crisis.
The euro dropped the most against the dollar in three months as German Chancellor Angela Merkel said the 16-nation currency is in an “exceptionally serious” situation after Ireland asked for a financial rescue.