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TSX hits two-week high on G20 pledge

TORONTO (Reuters) - Toronto's main stock index rose to a two-week high yesterday after a pledge from the Group of 20 to pursue economic stimulus measures until recovery is in place encouraged investors to let go of the safe-haven US dollar and embrace riskier assets.

Suncor Energy rose 5.5 percent to C$37.35 to lead all heavyweight gainers, while Goldcorp advanced 4.6 percent to C$46.49.

Financial issues were also big contributors to the rally, with several banks among the index's top 10 gainers. Toronto-Dominion Bank, climbed 3.1 percent to C$66.59, and Royal Bank of Canada rose 2.2 percent rise to C$56.44.

"The No.1 driver was the weakness in the US dollar. Everybody is marching to that drum," said Sal Masionis, stockbroker at Brant Securities.

The dollar fell to a 15-month low against a basket of major currencies yesterday after the Group of 20 finance ministers and central bankers said at the end of a weekend meeting in Scotland that while the global economy has improved, recovery is still uneven and depends on policy support, which they vowed to provide until recovery was assured.

That helped boost appetite for risk, sending oil up more than two percent to above $79 a barrel and lifted gold prices to a record high above $1,110 an ounce.

The S&P/TSX composite index closed 236.46 points, or 2.1 percent, higher at 11,486.88, with nine of its 10 main groups up. Earlier in the day, the index touched 11,488.27, its highest level since October 26. It was the index's fifth straight session of gains.