The Canadian dollar slid this week as the Bank of Canada left its hawkish stance and may even lower interest rates. Wide-spread risk aversion on the Forex market added to the losses of the currency.
The loonie was falling ahead of the BoC meeting and continued to decline afterwards. The central bank was much more pessimistic compared to the previous statements and hinted at possibility of additional monetary stimulus. The market sentiment turned to the risk-off by the end of the week, hurting the Canadian currency further.
The currency gained on Friday after reaching multi-year lows on Thursday, but still was down over the week. Other commodity currencies followed the decline.
USD/CAD rose from 1.0980 to 1.1070, touching the high of 1.1172 — the highest rate since June 2009. EUR/CAD advanced from 1.4840 to 1.5140, touching 1.5273 — the highest since December 2009, and CAD/JPY fell from 92.99 to 92.23, reaching 92.01 — the prise was not seen June .
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