By MarketsFarm
WINNIPEG, Jan. 27 (MarketsFarm) – The Canadian dollar was weaker Thursday morning, as investors continued to react to the Bank of Canada’s decision to keep interest rates unchanged for now.
At 8:42 a.m. CST Thursday morning the Canadian dollar was at US$0.7889 or US$1=C$1.2676, which compares with Wednesday’s close of US$0.7933 or US$1=C$1.2606.
Canada’s central bank kept its key overnight rate unchanged at 0.25 per cent in its latest policy announcement on Wednesday, but acknowledged that a hike was likely by March. Many analysts had expected to see rates start rising already. The United States Federal Reserve also left its rates unchanged on Wednesday.
Crude oil was stronger in early activity, providing some support for the energy-linked Canadian currency. West Texas Intermediate was up by 1.22 per cent at US$88.42 per barrel.
The TSX was higher, up 148.37 points at 8:42 CST, trading at 20,744.26 points.
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