LOONIE SOARS TO 13- YEAR HIGH

The Canadian dollar thundered to a 13-year high yesterday, resurrecting its link to oil prices.

The Canadian dollar finished at US85.57¢, up from US84.84¢, at Friday’s close.

Nervousness over Rita, a new storm brewing in the Gulf of Mexico, lit a fire under U.S. gold futures, which rocketed to a fresh 17-year high, and U.S. light crude, which settled 7% higher above US$67 a barrel.

This sent the Canadian dollar to US85.74¢, its best level since January, 1992, before it gave up some of its gains.

In other markets, the euro tumbled against the U. S. dollar amid political uncertainty in Germany after Sunday’s election and expectations of another dollarsupportive move up in U.S. interest rates this week.

The euro slumped to a sevenweek low against the U.S. dollar after an inconclusive German election. The euro was off 0.7% at US$1.2150.