CAD Slumped After Rate Cut

The Canadian dollar slumped after the Bank of Canada cut overnight interest rates by a quarter-percentage point to 4.25% on its monetary policy meeting today. This decision surprised the market a bit and drove the loonie weaken to 1.0150 versus the dollar, the highest since the pair dropping below par.

Besides, the fall in energy prices weighs on the loonie. Crude oil fell to the lowest close since October on concern that the Organization of Petroleum Exporting Countries may increase oil output tomorrow.