Loonie follows stocks higher

flovestock

Malcolm Morrison
TORONTO— The Canadian Press
Published Monday, Nov. 28, 2011 8:19AM EST
Last updated Monday, Nov. 28, 2011 8:28AM EST

The Canadian dollar (CAD/USD-I0.970.021.89%) jumped almost one-and-a-half cents (U.S.) with traders willing to take on more risk amid hopes for a resolution to the European debt crisis.

The loonie surged 1.43 cents to 96.72 cents as sentiment also turned positive on signs of a strong start to the U.S. holiday retail shopping season.

A sharp runup in commodity prices also supported the Canadian dollar.

The January crude contract on the New York Mercantile Exchange jumped $2.79 to $99.56 a barrel.

Analysts pointed to a weekend report from Reuters that France and Germany are working on a much faster way towards euro zone integration.

Such a plan would start off with a core zone of eight to 10 countries instead of involving all 27 EU countries.

At the same time, the International Monetary Fund denied it was readying a