The Canadian dollar plummeted Wednesday as oil prices reached multiyear lows, but it snipped losses following the minutes of the Federal Reserve’s July policy meeting did not mention the timing of interest rate hikes.
US crude ended plunged to 6 ½-year lows, settling below C$42 a barrel.
The loonie closed at 76.28 US cents from Tuesday’s 76.59 US cents.
Oil moves has weakened the currency, pushing it to its lowest in a couple of weeks. It changed course ‘on the FOMC (Fed) minutes,” said Greg Anderson, Global Head of Foreign Exchange Strategy at BMO Capital Markets
Traders expect the loonie to remain within its present trading range before the release of Canada’s July inflation data on Friday.
The material has been provided by InstaForex Company – www.instaforex.com