By Commodity News Service Canada
WINNIPEG, Jan. 22 – The Canadian dollar was weaker Thursday morning, as the currency continued to react to Wednesday’s Bank of Canada interest rate cut.
At 9:19 CST Thursday morning the Canadian dollar was at US$0.8091 or C$1.2359 which compares with Wednesday’s North American close of US$0.8107, or C$1.2335.
The Bank of Canada’s unexpected move to cut its key interest rate to 0.75%, from 1.0%, had investors backing away from the Canadian currency once again on Thursday. A move by the European Central Bank to launch a 60 billion euros per month quantitative easing program also weighed on the Canadian currency relative to its US counterpart, as the US dollar climbed higher on the news.
Canadian retail sales and Consumer Price Index (CPI) data will be released on Friday, and expectations for softer readings from those economic indicators kept some caution in the currency as well.
The TSX was stronger in early activity, up 81.89 points at 9:19 CST to sit at 14,642.31.
