Canadian Financial Close: C$ strengthens following BoC rate cut

Glacier FarmMedia | MarketsFarm — The Canadian dollar strengthened relative to its United States counterpart on Wednesday, as currency traders reacted to the latest interest rate announcement from the Bank of Canada.

The Canadian dollar settled at US$0.6949 or US$1=C$1.4391, which compares with Tuesday’s close of US$0.6920 or US$1=C$1.4451.

The BoC lowered its key overnight interest rate by 25 basis points, taking it to 2.75 per cent. The cut was widely anticipated given recent strength in the Canadian economy. The accompanying statement was seen as balanced by economists, although the central bank also pointed to the uncertainty brought on by shifting tariff threats from the U.S.

Crude oil was stronger, with West Texas crude oil up by 2.11 per cent at US$67.65 per barrel.

The TSX Composite Index gained 175.14 points to close at 24,423.34 points.