By Commodity News Service Canada
Winnipeg, March 4 – The Canadian dollar moved higher against the US dollar at midday Wednesday, reacting to news that the Bank of Canada is keeping interest rates unchanged at 0.75 per cent, analysts said.
In the weeks prior to Wednesday morning’s announcement, some traders feared the central bank would make another interest rate cut due the negative impact weak oil prices are having on the Canadian economy.
At 11:49 CST Wednesday, the Canadian dollar was trading at US$0.8047 or US$1=C$1.2427, which compares with Tuesday’s North American close of US$0.8006 or US$1=C$1.2490.
Further support came from strength in gold prices and disappointing US employment data. ADP, a payroll firm in the US, said the private sector created 212,000 new jobs in February, below expectations of 219,000 new jobs.
However, ongoing worries about global economic problems and renewed weakness in crude oil values on Wednesday limited the upside.
The Toronto Stock Exchange was down 78.86 points, or 0.52%, at 11:49 CST Wednesday, to sit at 15,054.99.
