The Canadian dollar rallied on Wednesday following the Federal Reserve implied interest rate hikes could happen later than projected.
Policymakers said the US economy is on track to grow between 1.8% and 2.0% this year, from 2.3% to 2.7% range forecast in March.
The loonie closed at 81.73 US cents from Tuesday’s 81.22 US cents.
Several traders have been covering their US dollar long positions. It “still has all the catalysts going for it,” said Rahim Madhavji, President at KnightsbridgeFX.com.
On other economic news, Canadian wholesale trade leaped 1.9% in April.
The material has been provided by InstaForex Company – www.instaforex.com