Last Updated: Friday, October 26, 2007 | 10:29 AM ET
CBC News
The Canadian dollar kept gaining ground Friday while the U.S. continued to slump to new lows.
The loonie opened the day at $1.0401 US, before pulling back to trade at $1.0386 - up 0.33 a cent from Thursday's close. The loonie has not been in its current range since mid-1974.
So far this year, the loonie has gained almost 20 cents against the U.S. dollar.
The Canadian dollar's postwar high was $1.0614 US, set back on Aug. 21, 1957, prior to the government allowing the dollar to float against the U.S. greenback.
As part of its continued weakness, the U.S. dollar earlier reached a new record low Friday against the euro before regaining some ground.
Economists see the U.S. Federal Reserve moving to cut interest rates next week to boost the economy. The Fed made a surprise cut of one-half of a percentage point in September, but some economists said that has not been enough to stimulate demand in the U.S.
Soaring oil prices were also contributing to the loonie's rise. The price of light, sweet crude oil for December delivery rose $1.40 to settle at $91.86 US per barrel on the New York Mercantile Exchange. Earlier in the day, the price of crude pushed above $92 US.
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