Loonie climbs after Spanish banks boosted by aid

The value of the Canadian dollar gained against the U.S. dollar on Monday, pushed up by debt-hobbled Spain's receipt of international aid for its weakened banking sector, Reuters reports.

The loonie reached its top value in nearly three weeks of trading after the 17-nation bloc opted to loan Spain the euro equivalent of $125 billion. The asset considered more risky benefited as the loan amount was more than a preliminary audit had noted the banking sector of the euro zone's fourth-largest economy required to help its financial institutions.

"Initially risk appetite soared as Spain announced that they are planning on moving forward and asking for outside funding for the banking system," chief currency strategist Camilla Sutton with Scotiabank told the news source. "However, the rally seems to be fading a bit as tremendous uncertainty for Europe remains."

The price of oil, the top commodity of the natural-resources-rich nation, also climbed, which tugged upward the monetary unit.

Bloomberg reports the monetary unit's boost was due to an alleviation of some tension caused by the sovereign debt crisis, which has been thrashing about the euro zone for roughly 30 months.