WINNIPEG, March 27 (MarketsFarm) – The Canadian dollar was slightly stronger following an unscheduled interest rate cut from the Bank of Canada.
The dollar finished the day at US$0.7114 or US$1=C$1.4056, compared to Thursday when it closed at US$0.7104 or US$1=C$1.4077.
The Bank of Canada cut its key interest rate by 50 basis points to total 0.25 per cent. In a written statement, the central bank said “this unscheduled rate decision brings the policy rate to its effective lower bound and is intended to provide support to the Canadian financial system and the economy during the COVID-19 pandemic.”
Despite the supportive news, stock indices showed losses on the day. The TSX Composite Index was down by 638.43 points to close at 12,687.74.
Brent crude oil lost $1.66 to close at US$24.67 per barrel. West Texas Intermediate (WTI) crude oil fell by $1.02 to close at US$21.58 per barrel.
Canada’s agricultural sector fared as follows:
Buhler Industries dn $ 0.36 at $ 2.95
Linamar Corp. dn $ 1.20 at $ 28.10
Maple Leaf Foods up $ 0.59 at $ 22.77
Nutrien Ltd. dn $ 2.46 at $ 43.47
Ritchie Bros Auctioneers Inc. dn $ 0.51 at $ 46.08
Rocky Mountain Dealerships Inc. dn $ 0.10 at $ 3.69
(All figures are in Canadian dollars.)