The Canadian dollar was lower after the Bank of Canada said it's leaving the key overnight interest rate unchanged at one per cent and again suggested it will stay that low for some time.
currency slipped 0.4 of a cent to a fresh, eight-month low of 96.88
cents US as the bank said that "the considerable monetary policy
stimulus currently in place will likely remain appropriate for a period
of time, after which some modest withdrawal will likely be required."
its last announcement in late January, the bank had also hinted that
rate hikes were some way off, saying at that time that "the timing of
any such withdrawal (of monetary policy stimulus) is less imminent than
The dollar has fallen about 3.3 cents against the U.S. dollar since the Bank of Canada's January announcement.
then, economic data has shown falling retail sales at the end of 2012, a
contraction of economic growth in December and low inflationary
Traders also looked ahead to the Canadian
February employment report coming out Friday. Economists looked for job
creation around 7,500.
Meanwhile, there was positive
employment data two days before the release of the U.S. government's
employment report for February.
Payroll firm ADP said the
private sector created 198,000 jobs last month. The data came out two
days ahead of the U.S. government's employment report for February.
Economists had been expecting that report to show the economy created
about 155,000 jobs.
BMO revised its expectations to 180,000 in the wake of the report.