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A rising currency and a red-hot labour market has sent Canadian consumer confidence to the highest in three years.

The Bloomberg Nanos Canadian Confidence Index — a gauge based on telephone polling — climbed to 60.5 in the week ended Aug. 4, the highest since July 2014 and close to a record.

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The improving sentiment suggests Canadians are shrugging off the impact of higher borrowing costs after the Bank of Canada raised interest rates last month, focusing instead on an accelerating economy that has driven the jobless rate to the lowest since 2008 and the purchasing power benefits that come with a higher dollar. That bodes well for a continuation of the household spending that has been fueling the nation’s expansion.

“While the normalization of interest rates is likely to have a negative impact on household balance sheets, a stronger Canadian dollar could be perceived as another sign of a healthier economy,” said Robert Lawrie, a Bloomberg economist based in New York.