Canadian dollar higher as US leaders meet to discuss fiscal cliff

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

The loonie ended the session up 0.29 of a cent to 101.66 cents US.

House of Representatives Speaker John Boehner reportedly met with President Barack Obama at the White House on Monday to discuss the pending fiscal cliff and deficit reduction.

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, the January crude contract on the New York Mercantile Exchange rose 47 cents to close at US$87.20 a barrel.

March copper declined 1.7 cents to US$3.67 a pound while February gold bullion lifted $1.20 to US$1,698.20 an ounce.