The Canadian Dollar reached its weakest level in eight months versus the U.S. Dollar after the Bank of Canada stated that in the nearest future it would not raise-up interest rates due to inflation, that is slowing more than it was expected. The loonie dropped 0.5% to C$1.0305 versus the greenback after previously depreciating 0.7%. One Canadian Dollar buys 97.04 U.S cents.
"It might retrace a little bit once the headlines are digested, but the overall message is that rates will still remain low for a long period of time before eventually being taken higher. We should see some of the data begin to turn a little more positively, so I think the Canadian dollar could move a little bit higher if we start to see that run in the data," said David Tulk, chief macro strategist at Toronto- Dominon Bank's TD Securities unit.