Canada’s dollar traded at almost the strongest level this month versus its U.S. counterpart on speculation leaders of France and Germany will forge a plan in the next several days to quell the region’s debt crisis. The Canadian currency rose for a second day as crude oil traded above $88 a barrel and an index of developed-nation stocks advanced. “Marked relief that despite denials, Europe might actually have a real plan under discussion” is boosting the Canadian dollar, said David Watt, senior currency strategist at Royal Bank of Canada’s RBC Capital Markets unit in Toronto, by e-mail. “This is helping ease market tensions further.” Canada’s currency appreciated 0.4 percent to C$1.0100 per U.S. dollar at 8:40 a.m. in Toronto. It touched C$1.0086, almost the strongest since Sept. 21. One Canadian dollar buys 99.01 U.S. cents. Futures on crude oil rose as much as 0.6 percent before trading up 0.2 percent to $88.58 a barrel in New York. The MSCI World Index advanced for a second day, rising 0.7 percent. The currency stayed higher after Statistics Canada said the nation’s index of leading indicators dropped 0.1 percent in September, the first decline in a year, led by declines in manufacturing. Economists surveyed by Bloomberg News predicted the index would rise 0.1 percent, according to the median of eight estimates. Government bonds fell for a second day, pushing the yield on benchmark 10-year debt three basis points higher to 2.34 percent. The price of the 3.25 percent security maturing in June 2021 fell 30 cents to C$107.77. To contact the reporter on this story: Chris Fournier in Halifax, Nova Scotia at cfournier3@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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