By Commodity News Service Canada
Winnipeg, March 6 – The Canadian dollar moved sharply lower against its US counterpart at midday Wednesday, in reaction to the Bank of Canada’s dovish announcement this morning, analysts said.
The Bank of Canada announced Wednesday morning that it would keep its interest rate unchanged at 1 per cent, as expected. The bank also said a rate hike is in the more distant future than they previously anticipated due to weak economic conditions.
At 11:57 CST Wednesday, the Canadian dollar was trading at US$0.9692, or US$1=C$1.0318, which compares with Tuesday’s North American close of US$0.9728, or US$=C$1.0280.
Declines seen in crude oil also spilled over to put some downward pressure on the value of the Canadian dollar.
Traders were looking ahead to Friday, when Statistics Canada will release its latest employment data.
The Toronto Stock Exchange was up 76.54 points, or 0.60%, at 11:57 CST Wednesday, to sit at 12,812.58.
