The Canadian dollar hit a 2 ½-month trough versus the US dollar on Thursday as the currency continued digesting doubts over Greek debt crisis and lowered projections for the economy.
Investors are monitoring additional updates about Greece’s fate following Prime Minister Alexis Tsipras urged voters to reject a bailout proposal in a referendum on Sunday.
The loonie stood at 79.71 US cents from 79.43 US cents in the last session. Canadian markets were shut Wednesday to observe Canada day.
Another interest rate hike is in play “but it doesn’t necessarily mean that is going to happen,” said Lennon Sweeting, Currency Strategist at USForex.
Markets are still pricing in around a 65% chance the Bank of Canada will retain its benchmark rate at 0.75% in its next policy announcement this month.
The material has been provided by InstaForex Company – www.instaforex.com