Canadian Dollar Extends Decline After BoC Rate Cut
24 July 2024 - 9:59PM
RTTF2
The Canadian dollar extended decline against its major
counterparts in the New York session on Wednesday, as the Bank of
Canada reduced its key policy rate further amid easing inflationary
pressures.
The BoC said it has reduced its target for the overnight rate by
25 basis points to 4.5 percent, with the bank rate at 4.75 percent
and the deposit rate at 4.5 percent.
The Canadian central bank said the decision to lower rates for
the second straight meeting came as broad price pressures continue
to ease and inflation is expected to move closer to 2 percent.
The Bank of Canada also said consumer price inflation is
expected to come down below core inflation in the second half of
this year, largely because of base year effects on gasoline
prices.
At the same time, the Canadian central bank noted price
pressures in some important parts of the economy—notably shelter
and some other services—are holding inflation up.
The Bank of Canada said its Governing Council is carefully
assessing these opposing forces on inflation and noted future
monetary policy decisions will be guided by incoming information
and their assessment of their implications for the inflation
outlook.
The loonie dropped to more than an 8-month low of 1.4998 against
the euro and more than 3-month lows of 1.3808 against the greenback
and 110.94 against the yen, off its early highs of 1.4933, 1.3778
and 113.17, respectively.
Against the aussie, the loonie retreated to 0.9113, from an
early 4-week high of 0.9083.
The loonie is likely to challenge support around 1.51 against
the euro, 1.39 against the greenback, 107.5 against the yen and
0.93 against the aussie.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Jun 2024 to Jul 2024
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Jul 2023 to Jul 2024
