Canadian dollar climbs as intervention chatter grows louder

The value of the Canadian dollar pushed to its top rate since late May on Tuesday against its southerly rival amid conjecture that central banks are primed to employ strategies of spurring the economy, according to Reuters.

As global manufacturing decelerates, speculation is mounting that nations' financial institutions will answer by intervening. The U.S. Institute for Supply management indicated that June saw the American sector shrink for the first time in almost 36 months.

A third round of monetary easing, more colloquially known as QE3, is a possibility in the U.S. as soon as next month, one strategist told the news source.

"After the ISM yesterday, we would have thought maybe more of a risk-off mood, but people are expecting more in the way of QE3 now potentially as soon as August and that's one of the factors we think that is preventing more of an erosion of risk appetite," head of Canadian fixed income and currency strategy Mark Chandler with RBC Capital Markets told Reuters.

The Canadian Press reports that stocks were looking up on the Toronto market on Tuesday, the first trading session of the month.