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The Canadian dollar spiked above 82 cents U.S. on Wednesday after the Bank of Canada hiked its key interest rate for the second time in 60 days to one per cent, further fuelling the loonie rally that has coincided with a tighter monetary policy and impressive economic numbers.

Following the bank’s quarter-point adjustment upwards Wednesday morning, the Canadian dollar gained about one-and-a-half pennies, and had appreciated by about 10.3 per cent against the U.S. greenback for the year.

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The post-hike jump in the loonie’s value brought it to a two-year high, according to Bloomberg, before the dollar settled at 81.76 cents U.S. by 3:00 p.m. ET. The approximately 1.29 per cent increase for the day would make it the largest daily increase since the Bank of Canada’s last rate announcement on July 12, which was also a quarter-point hike.

In explaining the decision to bump up its overnight rate target, the Bank of Canada noted Wednesday that “significant geopolitical risks and uncertainties around international trade and fiscal policies” had helped contribute to a weakening of the U.S. dollar against other major currencies.