U.S. dollar dips vs. loonie, other currencies

The Canadian dollar rose by more than half a centMonday as the U.S. dollar slumped amid skepticism about a pledge by Group of 20 finance ministers to avoid currency devaluations that could derail the global recovery.

The loonie closedup 0.63 of a cent to 98.01 cents US.

The U.S. dollar touched a 15-year low against the yen, at 80.49 yen before rebounding to 80.792 late in the afternoon.

The G20 communiquannounced that the International Monetary Fund would assume the role of monitor of members' current account balances for excesses, although the ministers set no upper or lower limits.

"Since the G20 has no powers of enforcement and the IMF is generally viewed as reluctant to openly criticize its more powerful members, the effectiveness of this policy is somewhat doubtful," Vancouver-based Citizens Bank said in a commentary.

Cotton futures gained five cents, the maximum allowed in New York, to a record $1.2471 US a pound.

Traders were buying commodities, which are priced in U.S. dollars, as a hedge against further declines in the greenback, and on reports of crop damage in China and the U.S.

The December crude contract on the New York Mercantile Exchange gained 83 cents to $82.52 US a barrel.

TheDecember gold contract on the Nymex moved ahead $13.80 to $1,338.90 US an ounce. In Toronto, the S&P/TSX composite index closed up62.4 points, or 0.5 per cent, to 12,663.6.

New York markets were also higher with the Dow Jones industrial up 31.5 points, or 0.3 per cent, to 11,164.1. The Nasdaq climbed 11.5 points, or 0.5 per cent,to 2,490.9, while the S&P 500 index climbed 2.5 points, or 0.2 per cent, to 1,185.6.