/www.fxserver.com/ TORONTO - The Canadian pushed higher on Thursday as investors bet that the Bank of Canada will hike interest rates.
The loonie closed at 68.79 cents US, up 0.62 of a cent from Wednesday's close.
The dollar has not been this high since April 6, 2000, when it closed at 68.84 cents US.
The Bank of Canada is slated to make its next interest rate decision on Tuesday. The bank's governor, David Dodge, has repeatedly said over the past few weeks that the central bank will raise interest rates to keep a lid on inflation.
"Although opinion remains divided on the Bank of Canada, markets are preparing for the possibility of a rate hike next week," BMO Nesbitt Burns economist David Watt said.
He said interest rate will head higher this year, even if the Bank of Canada holds off next week to await greater clarity on the potential impact of the war in Iraq and the SARS outbreak.