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Canadian dollar higher as plans develop in US over discussion of fiscal cliff

TORONTO – The Canadian dollar moved higher Monday as commodity prices gained some traction and some progress was made south of the border toward avoiding the so-called “fiscal cliff.”

The loonie edged up 0.26 of a cent to 101.63 cents US near midday.

In the late morning, a White House official said a meeting was planned between President Barack Obama and House Speaker John Boehner over the U.S. budget.

The meeting comes as Boehner is offering $1 trillion in higher tax revenue over 10 years and an increase in the top tax rate on people making more than $1 million a year.

The speaker also has offered a large enough extension in the government’s borrowing cap to fund the government for one year before the issue must be revisited — conditioned on the president agreeing to $1 trillion in cuts.

Meanwhile, commodity prices were mostly higher.

The January crude contract on the New York Mercantile Exchange rose 80 cents to US$87.53 a barrel.

February gold bullion rose $1.60 to US$1,696.60 an ounce, but March copper was down two cents at US$3.66 a pound.