C$ Rises as Bank of Canada Leaves Rates Unchanged, Notes Domestic Demand Strong

(The Canadian Press)

The Canadian dollar moved higher Wednesday after the Bank of Canada decided to leave its key rate unchanged at three per cent, noting that “overall, the level of economic activity is slightly lower than expected in July but still close to the economy’s production capacity.”

The currency was up 0.15 cent after the announcement to 93.73 cents US as the bank said that “domestic demand has slowed modestly but remains strong.” “It continues to be supported by financial conditions that remain significantly better than those in most other major economies and by income gains stemming from past improvements in the terms of trade.”

Meanwhile, another day of retreating oil prices is expected to drive the Toronto stock market lower while New York indexes are also likely in for a negative opening on more jitters in the financial sector and geneal worries about the overall economy. Find out more.