Canadian Dollar Reverses Lower On The Back Of Potential Stimulus
The Canadian dollar hit one-month high at 1.30048 versus the U.S dollar on Wednesday but had to surrender its gains later after Bank of Canada Governor Stephen Poloz stated that the central bank had “actively” discussed the possibility of injecting more stimulus into the economy.
The Loonie was supported strongly earlier today on the face of the sharp rise in oil prices. U.S crude reached the highest in the last 16 months after the Energy Information Administration reported domestic crude supplies dropped by 5.2 million barrels in the week ended October 14th.
The Bank of Canada decided to hold its benchmark interest rate at 0.5 percent at its monetary policy meeting on Wednesday, but further stimulus were taken consideration in order to “speed up the return of the economy to full capacity”, Poloz said.
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