The Canadian dollar hit a Wednesday top 3? years and North American markets held their largest gathering of a day of the year.
Gold reached another record as the U.S. dollar weakened.
Closed loons of cent 104.90 0.35 cents after touching a high of 105.29 cents US, its the highest level since November 2007.
Some economists said that the rally was propelled by a move products investors seeking safe haven, tangible investment.
The Canadian dollar hit a new multi-year high in prices of raw materials and concerns about the health of the US economy. (Canadian Press)Markets responded to concerns about possible inflation, as the reserve Federal American expands the money by $ 600 billion supply and effects on recovery as this stimulus ends this summer.
Traders are also concerned by the possibility of a downgrade of the U.S. government debt after that the rating agency Standard and prevents Monday Poor one in three chance that he would lower the rating over the next two years.
"It is a history of US dollar as the combination of loose monetary policy and a compromise budget post weigh heavily against the [ticket]," said Camilla Sutton Scotia Capital Chief currency strategist.
The weaker greenback has helped push the price of oil above US $111 a barrel. Oil also rose after a report showed U.S. supplies gasoline fell for a second week, suggesting higher fuel have not slowed demand.
June crude closed with a gain of $3.17 or 2.9% to $111.45 per barrel.
In Toronto, the S & P/TSX Composite Index finished the day at 160.65 points, or 1.2%, to 13,897.48, supported by solid materials and oil issues.
In New York, the Dow Jones industrial average rose to 186.79 points, or 1.5%, to 12,453.54, its highest level since June 2008.
Advance of the dollar followed a period prior to more than 8 tenths of one cent Tuesday after figures of higher inflation more convinced traders the Bank of the Canada can pass to the increase in the rate of interest in July.
Statistical Canada said Tuesday that country's inflation rate increased by 3.3% in the 12 months ending in March, the highest since before the recession.
Economists surveyed by Bloomberg expected the figure to come more close to 2.8%.
Also supported metal prices into account in the rising Canadian dollar.
Gold rising above US $1,500 an ounce Wednesday for the first time as concerns over the health of the economy sent U.S. investors flocking to a shelter.
Future of gold for June delivery settled at $3.80 to $1,498.90 an ounce.
In its warning, Standard & Poor cited a "material risk" that the politicians could not agree on how reduce the budget deficit in the medium term, say to the United States a "very large budget deficits and rising government debt and the path to the solution of these is not clear for us."
This issue could continue to have an impact on the U.S. greenback, said Sutton.
"The dollar should weaken further that the combination of fiscal policy and monetary us weighs heavily on the prospects", she said.
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