By Commodity News Service Canada
Winnipeg, April 16 – The Canadian dollar fell against its US counterpart at midday Wednesday, as the Bank of Canada decided to hold the interest rate steady at 1%.
The bank also dropped its first quarter growth forecast from 2.5 per cent to 1.5 per cent.
Data in its quarterly Monetary Policy Report suggests a faster than expected rise in Canada’s headline inflation rate could occur, which pressured the dollar.
At 11:50 CDT Wednesday, the Canadian dollar was trading at US$0.9084 or US$1.1008, which compares with Tuesday’s North American close of US$0.9110, or US$=$1.0977.
At 11:45 CDT Wednesday, the Toronto Stock Exchange was up 111.15 points to sit at 14,415.07.
