Canadian dollar up on prospect of rate hike

Paris

CANADA'S dollar hit a two-month high on Tuesday after the Canadian central bank raised the prospect of an interest rate hike as soon as this year, while the US dollar inched down as traders eyed the start of a two-day Federal Reserve meeting.

Bank of Canada senior deputy governor Carolyn Wilkins said late on Monday that first-quarter growth in the North American country had been "pretty impressive", and that signs that economic growth was broadening would lead the central bank to consider whether current low rates would still be required.