The Canadian dollar was slightly higher Wednesday after the Bank of Canada kept its key interest rate steady.
The loonie picked up 0.2 of a cent to 87.97 cents (U.S.) after the decision, which maintained the interest rate at 1 per cent as expected.
The central bank said the health of the domestic economy faces risks from declining oil prices and high household debt, though the Canadian economy shows signs of a broadening recovery.
CIBC World Markets economist Nick Exarhos said the comments indicates the BoC “still sees these pressures as largely temporary.”
“The statement did sound more sanguine on the U.S. economy as pertains to the lift it will provide to Canadian exports,” Exarhos wrote in a note.
Elsewhere, the January crude contract on the New York Mercantile Exchange is up 94 cents at $67.82 a barrel.
February bullion moved ahead $6.20 at $1,205.60 an ounce, while March copper is down 1.8 cents at $2.874 a pound.
via Globe and Mail