Canadian dollar hits highest level

The Canadian dollar raced to its highest level since the late 1800s against the US currency on Wednesday, thanks to lofty oil prices and a weak greenback after the US Federal Reserve cut interest rates. The Canadian dollar closed at US $1.0585, making a US dollar worth 94.47 Canadian cents, up from Tuesday's close of US $1.0492, or 95.31 Canadian cents.
Shortly after the North American session ended, the red-hot Canadian currency hit US $1.0617, or 94.19 Canadian cents, which some market experts consider an all-time high, given the drastic change in market conditions since the 1800s.
The Fed did as expected and cut its key overnight federal funds rate to 4.50 percent, putting US and Canadian rates at par for the first time since early 2005. The Canadian currency has rallied sharply since hitting its all-time low in January 2002, and its gains have been tied to higher commodity prices, a robust domestic economy, a weak US dollar and merger-related interest.