Dollar climbs sharply on hope for Europe

flovestock

Malcolm Morrison
TORONTO— The Canadian Press
Published Tuesday, Sep. 27, 2011 9:35AM EDT
Last updated Tuesday, Sep. 27, 2011 10:08AM EDT

The Canadian dollar (CAD/USD-I0.980.0050.46%) was up sharply Tuesday, supported by surging prices for commodities with traders willing to take on extra risk amid hopes that European officials will come up with a resolution to the region’s debt problems.

The currency was up 0.74 of a cent to 97.99 cents (U.S.).

Reports said that officials were working on a plan to recapitalize banks in the euro zone, using leverage to bolster the European Financial Stability Facility, the euro zone’s bailout fund.

There was also relief after Greece’s finance minister said Tuesday that the country will receive the next batch of bailout loans amounting to