Thursday, January 22, 2015

Canadian Dollar Near Six Year Low after BOC Surprise

The Canadian dollar languished at its lowest in nearly six years early on Thursday, having suffered a massive drop after the Bank of Canada stunned markets by cutting interest rates.

The surprise easing came as the European Central Bank is widely expected to launch a large-scale sovereign bond-buying program.  The BOC lowered its overnight rate to 0.75 percent from 1 percent “to provide insurance” against the risks of financial instability and lower inflation after a slump in oil prices.

The Canadian dollar skidded almost 2 percent – its biggest one-day drop since November 2011 – to as far as $1.2420 per U.S. dollar, reaching a low not seen since early 2009. It last stood at C$1.2325.

CNBC

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