News Column

Canadian Dollar Rises As BoC Keeps Rate On Hold At 1.00%

September 3, 2014

CANBERA (Alliance News) - The Canadian dollar advanced against the other major currencies in New York deals on Wednesday, as the Bank of Canada decided to maintain its target for the overnight rate at 1%.

The Bank Rate was held at 1.25% and the deposit rate at 0.75%.

"The risks to the outlook for inflation remain roughly balanced, while the risks associated with household imbalances have not diminished. The balance of these risks is still within the zone for which the current stance of monetary policy is appropriate and therefore the target for the overnight rate remains at 1%," the bank said in the accompanying statement.

The Bank also said that it remains neutral with respect to the next change to the policy rate, and its timing and direction will depend on how new information influences the outlook and assessment of risks.

The loonie advanced to an 8-month high of 96.44 against the yen, from an early low of 95.95.

The loonie reversed from early 1-week lows of 1.0942 against the greenback, 1.4362 against the euro and 1.0203 against the aussie, recovering to 1.0876, 1.4301 and 1.0163, respectively.

The next possible resistance for the loonie is seen around 97.00 against the yen, 1.08 against the greenback, 1.42 against the euro and 1.01 against the aussie.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Alliance News

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters