Canadian Forex Midday: C$ Drops Sharply

By Commodity News Service Canada

Winnipeg, April 17 – The Canadian dollar was sharply lower against its US counterpart at midday Wednesday, as the Bank of Canada reduced its economic growth forecast.

The Bank of Canada announced it has lowered its growth forecast for 2013 to 1.5 per cent, from the 2 per cent that was predicted in January. The interest rate remained unchanged at 1 per cent.

At 11:54 CDT Wednesday, the Canadian dollar was trading at US$0.9731, or US$1=C$1.0276, which compares with Tuesday’s North American close of US$0.9799, or US$=C$1.0205.

Losses seen in outside equity markets and commodities, including crude oil and gold, further weighed on the value of the Canadian dollar.

The Toronto Stock Exchange was down 188.20 points, or 1.55%, at 11:54 CDT Wednesday, to sit at 11,931.72.