The dollar nursed modest losses against the yen and euro early on Thursday, but suffered bigger falls versus commodity currencies led by the Canadian dollar. The loonie jumped to three-month highs of C$1.2280 per USD after the Bank of Canada surprised markets yet again, this time by indicating no further easings are imminent. In January, the BOC stunned investors with a cut.
Other commodity currencies also firmed with the Australian dollar briefly touching 77 U.S. cents, pulling away from this week’s low of $0.7553. It last stood at $0.7676. In contrast, the euro remained stuck in familiar territory after the European Central Bank policy meeting turned out to be a non-event for investors.
Not so for President Mario Draghi who was showered with confetti by a protestor as she leapt onto a desk in front of the startled central banker during a post-meeting news conference. The conference resumed after the brief interruption. Draghi pledged to roll out its money-printing program ‘firmly’ and also granted continued backing for Greece, saying there was no need to limit emergency funding for its banks.