A combination of factors involving commodities price rebound, stocks rally and a less attractive U.S. dollar in global markets made the loonie to post the highest gains since the Korean War years.

The pound sterling rallied against the dollar and the yen after a report on house prices revealed an unexpected rise in May, boosting confidence among investors that the real estate crisis may be easing.

The month of May posted the biggest losses for the U.S. currency in a one-year period against the euro, as equities markets continue to rise on optimism about improvements in the global economic situation.

The yen hit a 8-week low against the dollar and also lost ground against the euro, as Japanese investors, driven by a new wave of confidence on world markets, return to overseas investments.

The Brazilian currency had the sharpest rise in seven days after the country’s first current account surplus in 19 months was posted this week, pushing the national equities market up.

After a rebound in the North American consumer confidence, Asian stocks rallied, decreasing demand for safer investments such as the Japanese yen.

The Chinese yuan declined at a fastest pace during the last two months as the country’s central bank lowered the reference exchange rate to stimulate the exporting industry.

The Japanese yen declined against the U.S. dollar and the euro as the North Korea tested its nuclear bomb, increasing the political tension in the region and the global risk-aversion, while making yen a less attractive asset.

The dollar fell to the lowest level against the euro since early January as the S&P credit rating agency revised U.K. rating outlook and traders are afraid that the U.S. will be next.

The New Zealand dollar rose for the fourth straight day against its U.S. counterpart and advanced for the second day versus the Australian dollar today, assisted by the signs of the global recession’s easing.