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.
Showing posts with label crude oil. Show all posts
Showing posts with label crude oil. Show all posts
CAD Slumped After Rate Cut
Oil Price Boosted CAD & AUD
Rising oil prices boosted the commodity currencies, such as the Canadian dollar and the Australian dollar. Crude Oil hit record high at 92.22 per barrel yesterday. The Canadian dollar strengthened to 0.9592 versus the dollar, while the Australian dollar rallied to 0.9176 against the dollar. With increasing demand of gas in the coming winter, oil prices are likely to surge higher.
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