Canadian Financial Close: C$ firm following BoC rate cut

Glacier FarmMedia | MarketsFarm — The Canadian dollar was slightly firmer on Wednesday, seeing a muted reaction to the latest monetary policy announcement from the Bank of Canada.

The Canadian dollar settled at US$0.7065 or US$1=C$1.4154 on Wednesday, 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.”

West Texas crude oil was up 2.52 per cent at US$70.32 per barrel.

The TSX Composite Index was up by 153.37 points to close at 25,657.70 points.