Canadian Loonie down against American dollar

Canadian Loonie down against American dollar

K.T. Jagannathan

The Canadian dollar was trading lower at 1.31 against the American currency at 7.04 p.m. GMT.

The weakening CAD follows a drop in oil prices amid a surprise build in the U.S. crude oil inventories and mounting concerns over fuel demand recovery. On Wednesday, Canada’s central bank left its benchmark interest rate unchanged at the effective lower bound of 0.25%. The central bank also indicated that it would continue its quantitative easing program. It also said that it would go in for large-scale asset purchases of at least CAD 5 billion a week of government bonds. Bank of Canada Governor Macklem is expected to deliver a speech later in the day.

The Canadian currency was trading lower against the Euro also at 0.6406. It was down against the Japanese Yen too at 80.6333. CAD was trending lower against the Chinese Yuan at 5.1898.

However, Loonie was trading higher at 0.5921 against the British pound. Against the Indian rupee too, the Canadian currency was trading higher at 55.8428.