By Commodity News Service Canada
Winnipeg, March 2 – The Canadian dollar was softer relative to the US dollar at midday Monday, as traders squared positions ahead of Wednesday’s Bank of Canada interest rate announcement.
Sentiment is that the Bank of Canada will likely keep interest rates unchanged. Market watchers initially thought the central bank would make further interest rate cuts, but positive remarks last week helped shift those expectations.
At 11:50 CST Monday, the Canadian dollar was trading at US$0.7978 or US$1=C$1.2534, which compares with Friday’s North American close of US$0.7998 or US$1=C$1.2503.
Downward pressure came from worries about slow global economic growth, including problems in China, analysts said. China’s central bank cut its key rate over the weekend in an effort to stimulate more economic growth in the country.
Weakness in gold values was also bearish for the Canadian dollar, though crude oil prices were showing some strength, which was supportive.
The Toronto Stock Exchange was up 25.08 points, or 0.16%, at 11:50 CST Monday, to sit at 15,259.42.
