Canadian Dollar Drops as Benchmark Rates Remain Unchanged

Canadian Dollar Drops as Benchmark Rates Remain Unchanged

Canada?s dollar fell to the lowest level against its U.S. counterpart in almost a week after the Bank of Canada kept interest rates unchanged and concern that currency strength is hampering exports.

The loonie, as the currency is nicknamed, weakened from almost a 40-month high against the greenback as the BOC held its target rate for overnight loans between commercial banks at 1 percent, where it has been since September. Today?s decision was forecast by all 28 economists surveyed by Bloomberg News. Central bankers said currency appreciation ?could create even greater headwinds? for the economy.

Source: Canadian Dollar Drops as Benchmark Rates Remain Unchanged