Canada’s dollar was headed for its second straight monthly gain versus the greenback as crude oil, the nation’s largest export, climbed and investors ratcheted up expectations for interest-rate increases. The currency rose against all except two of its 16 major peers today as U.S. lawmakers prepare for a vote on raising the country’s debt limit. Economists predict a Canadian government report tomorrow will show the country’s output expanded in May after stalling in April. “We’re seeing some safe-haven flows going into the Canadian dollar, which has been a positive factor,” said George Davis, chief technical analyst for fixed income and currency strategy in Toronto at Royal Bank of Canada’s RBC Capital Markets unit, via e-mail. “The repricing of interest-rate risk was followed by some safe-haven flows as the U.S. debt-ceiling debate deteriorated.” The Canadian currency is up 1.7 percent this month to 94.73 cents per U.S. dollar, from 96.34 cents on June 30. It strengthened 0.3 percent today at 7:59 a.m. in Toronto, compared with 94.98 cents yesterday, and touched 94.07 cents on July 26, the strongest since Nov. 9, 2007. One Canadian dollar buys $1.0555. Crude oil futures are headed for a 2.3 percent gain in July. Futures rose 0.2 percent to $97.59 a barrel in New York. The Bank of Canada on July 19 kept its benchmark policy rate at 1 percent and said borrowing costs will rise, omitting the word “eventually,” which had appeared in previous statements. The U.S. House of Representatives plans to vote today on a debt-limit increase proposal that confronts unified Democratic opposition in the Senate. House Speaker John Boehner of Ohio gained support among fellow Republicans for his plan to raise the debt ceiling after reworking the legislation to cut $917 billion over 10 years, more than his original approach. Treasury Secretary Timothy F. Geithner has said the U.S. will run out of options to prevent a default on Aug. 2 if the debt ceiling isn’t raised. To contact the reporters on this story: Chris Fournier in Toronto at cfournier3@bloomberg.net; To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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