The Canadian dollar tumbled today following the monetary policy meeting of Canada’s central bank. Falling prices for crude oil also contributed to the decline of the currency.
The Bank of Canada announced on Wednesday that it is leaving interest rates unchanged, including the overnight rate that remained at 0.5 percent. At the same time, the central bank lowered its growth forecast for the Canadian economy in 2016 and 2017. The central bank mentioned “lower prices for oil and other commodities” as a negative factor for the country’s economy. One of the reasons for the drop of prices was “uncertainty about Chinaâs transition to a slower growth path.”
Talking about oil, prices demonstrated significant losses today due to the unexpectedly huge build-up of US inventories. This contributed to the slump of the Canadian dollar during the Wednesday’s trading session.
USD/CAD climbed 1.2 percent from 1.2980 to 1.3163 as of 20:49 GMT today. EUR/CAD also gained 1.2 percent from 1.4721 to 1.4894. CAD/JPY dived 1.1 percent from 92.23 to 91.24.
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