Canadian forex midday: C$ weakens following rate announcement

By Commodity News Service Canada

WINNIPEG, July 17 – The Canadian dollar was weaker at midday Wednesday as the currency market reacted to the latest interest rate announcement from the Bank of Canada.

At 11:55 CDT, the Canadian dollar was trading at US$0.9602 or US$1=C$1.0414 which compares with Tuesday’s close of US$0.9647 or US$=C$1.0366.

The Bank of Canada left its key overnight rate unchanged at 1.0%, as had been anticipated. The accompanying statement indicated that rates would likely hold steady for the time being, with new Governor Stephen Poloz largely reading from the same script as his predecessor.

Comments from US Federal Reserve Chairman Ben Bernanke were also moving the currency markets on Wednesday, as he reiterated recent comments that the Fed would consider slowing its pace of economic stimulus if the economy shows more improvement.

At midday Wednesday the Toronto Stock Exchange was stronger, up 44.39 points at 11:55 CDT to sit at 12,561.28.