Canadian Dollar Near Six Year Low after BOC Surprise

The Canadian dollar languished at its lowest in nearly six years early on Thursday, having suffered a massive drop after the Bank of Canada stunned markets by cutting interest rates.

The surprise easing came as the European Central Bank is widely expected to launch a large-scale sovereign bond-buying program.  The BOC lowered its overnight rate to 0.75 percent from 1 percent “to provide insurance” against the risks of financial instability and lower inflation after a slump in oil prices.

The Canadian dollar skidded almost 2 percent – its biggest one-day drop since November 2011 – to as far as $1.2420 per U.S. dollar, reaching a low not seen since early 2009. It last stood at C$1.2325.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.