FINANCIAL MARKETS

The Canadian dollar surged to a level not seen in four months Wednesday as investors digested a more hawkish tone on interest rates by Bank of Canada governor Stephen Poloz.

The loonie jumped 0.74 of a U.S. cent to an average price of 76.57 cents US after comments from the head of the central bank raised speculation that an interest rate hike could come as early as next month.

The currency’s ascent helped send financials stocks higher, with that sector leading gainers on the Toronto’s S&P/TSX composite index, which climbed 74.36 points to 15,355.58.

Poloz said in an interview broadcast on business news channel CNBC that the Canadian economy enjoyed “surprisingly” strong growth in the first three months of 2017 and he expected the pace to stay above potential.