The Canadian dollar rose almost a full U.S. cent to a 13-year high Monday, as crude oil prices sharply increased.

The loonie was trading during the day as high as 85.74 U.S. cents, up 0.9 of a cent from Friday’s close of 84.84 cents.

Meanwhile, the American dollar gained against the euro Monday following the inconclusive parliamentary election in Germany, Europe’s biggest economy.

The 12-nation euro bought US$1.2143 in afternoon New York trading, down from $1.2225 late Friday, while the British pound dropped to $1.8015 from $1.8059. The dollar also rose against the Japanese currency, rising to 111.44 yen from 111.33 yen.

Sunday’s election in Germany left conservative leader Angela Merkel with a slight advantage over Chancellor Gerhard Schroeder’s Social Democrats, but unable to form the centre-right coalition that she had wanted to push through labour market and tax reforms aimed at reviving the country’s sluggish economy.

Schroeder refused to concede defeat after his party came in only just behind Merkel’s Christian Democrats, and political leaders were scrambling to work out what coalition could form the new government. A combination of the two main parties was seen as a likely outcome.

Financial markets in several countries and regions, including Japan, South Korea and Hong Kong, were closed Monday for national holidays.

Markets were also watching for any action taken by the U.S. Federal Reserve. Policymakers meet tomorrow, with many economists betting they will lift the key interest rate by one-quarter of a percentage point to 3.75%. But the economic risks that could emerge from Hurricane Katrina has created some uncertainty.