TORONTO (Bloomberg) - Canadian stocks rose for a second day as commodity producers rallied after an interest rate increase in Australia weakened the US dollar and lifted the prices of fuel and raw materials.

Goldcorp Inc., Canada's second-largest bullion producer, gained 4.8 percent as the metal reached a record price. Suncor Energy Inc., the country's biggest energy company, advanced 2.7 percent. Potash Corp. of Saskatchewan, the world's largest fertiliser producer, added 2.7 percent.

The Standard & Poor's/TSX Composite Index rose 145.35 points, or 1.3 percent, to 11,247.97. The Australian Reserve Bank raised its benchmark interest rate to 3.25 percent from three percent, saying a rate increase to keep inflation in check is prudent now that "the risk of serious economic contraction" has passed.

"That's a signal for the whole world that one country's doing it, the rest of the world can't be too far behind," said Tony Demarin, chief investment officer of BCV Asset Management in Winnipeg, which manages about C$135 million ($127.8 million). "In being a commodity nation, Canada's probably closer to Australia than the rest of the world is."

The Canadian benchmark index has outgained the S&P 500 this year by 25 percent to 17 percent as commodity prices have rebounded on economic data pointing toward an end to the global recession. Raw-material and energy stocks make up 44 percent of the Canadian market, 14 percent of the US market and 19 percent of world stocks by market value.

The rate increase in Australia spurred speculation the global economic recovery will accelerate, encouraging investors to abandon the security of the US dollar for higher-yielding assets. Gold prices tend to increase when the US dollar weakens as investors seek a hedge against inflation.

Goldcorp climbed 4.8 percent to C$44.22. Barrick Gold Corp., the world's largest gold producer, advanced four percent to C$41.25 to contribute the most toward the S&P/TSX's gain. European Goldfields Ltd. led all S&P/TSX stocks with a 20 percent surge to C$6.03 after announcing the Greek government had finished a preliminary environmental assessment on a proposed gold and copper mine.

Inflation concerns also lifted the price of crude oil, Canada's top export. Oil for November delivery rose 0.7 percent to $70.88 a barrel in New York.

Suncor climbed 2.7 percent to C$36.45. Talisman Energy Inc., Canada's sixth-largest publicly traded oil and gas producer, rallied 5.5 percent, the most in five months, to C$19.29.

Potash Corp. of Saskatchewan, the world's largest fertiliser producer, advanced for the first time in six sessions, rising 2.7 percent to C$94.07. Executives at US rival Mosaic Co. said they expect renewed demand for potash in 2010.

Rogers Communications Inc., Canada's largest wireless carrier, declined 3.1 percent to a five-month low of C$28.05 after rivals BCE Inc. and Telus Corp. reached agreements with Apple Inc. to sell the iPhone. Rogers has been the exclusive Canadian carrier for the iPhone for more than a year.