Glacier FarmMedia | MarketsFarm — The Canadian dollar was stronger Wednesday morning as currency traders reacted to the latest monetary policy announcement from the Bank of Canada.
At 9:05 a.m. CST the Canadian dollar was trading at US$0.7079 or US$1=C$1.4126 which compares with Tuesday’s close of US$0.7059 or US$1=C$1.4167.
Canada’s central bank cut its key overnight interest rate by 50 basis points, taking it to 3.25 per cent. The move was widely anticipated, with the accompanying statement pointing to more gradual cuts going forward. However, the BoC also noted that the possibility of the incoming administration in the United States imposing tariffs on Canadian imports “has increased uncertainty and clouded the economic outlook.”
Crude oil was stronger Wednesday morning, with West Texas Intermediate crude oil up by 1.20 per cent at US$69.41 per barrel.
The TSX was firm, gaining 54.48 points at 9:05 CST to trade at 25,558.81.
