The Canadian dollar stumbled to 11-year troughs Tuesday as the Chinese central bank cut its interest rate.
The People’s Bank of China reduced its one-year benchmark lending rate by 25 basis points following Monday’s volatile trading, as global markets succumbed to panic selling on woes over sluggish Chinese growth.
The loonie finished at 74.93 US cents from Monday’s 75.40 US cents.
We are looking at an overall shift in risk sentiment, which was somewhat better this morning, “but has since faded pretty dramatically,” said David Tulk, Chief Canada Macro Strategist at TD Securities.
Meanwhile, crude price stayed at $40 a barrel, close to its 6 ½-year lows.
The material has been provided by InstaForex Company – www.instaforex.com