Loonie gains against dollar as FOMC meetings kick off

The value of the Canadian dollar solidified against the world's reserve currency, prompted by conjecture about worldwide central banks deploying stimulus programs to counteract tumult caused by the sovereign debt crisis, Reuters reports.

The loonie climbed to its top rate in four weeks while the primary stock index of Canada gained to its highest level in five weeks. Also on the rise on Tuesday were U.S. equities.

"In general, I think it's the expectation of continued stimulus by the Fed. Clearly they see that there's some headwinds in the global economy," managing director of foreign exchange sales Blake Jespersen with BMO Capital Markets told the news source, also noting low volume was afoot due to ongoing discussions with the policy-making arm of the U.S. Federal Reserve.

The nation's bond prices were dropping as two-year notes slipped 11 Canadian cents and 10-year bonds dropped 50 cents.

The Canadian Press reports anticipations are high for the Federal Open Market Committee to announce it plans to implement another round of Operation Twist when its meetings adjourn on Wednesday.