The Canadian dollar weakened on Wednesday following the Bank of Canada announced it will retain its 0.75% benchmark rate.
The loonie closed at 80.26 US cents from Tuesday’s 80.47 US cents.
The bank may not reduce rates, but maybe they are “too optimistic in the growth outlook for the second half of the year,” said Mazen Issa, Micro Strategist at TD Securities.
Some analysts doubted whether economic recuperation in the United States will give the strong benefits to Canada, which is expected by BOC Governor Stephen Poloz as Canadian exports climb.
The material has been provided by InstaForex Company – www.instaforex.com