Loonie is Canadian 1 dollar coin. The Canadian dollar roll down after BOC leave its main interest rate same and on this context that strong exchange may create harm the nation's economic rise. Recently the currency has risen a little bit and moves sideways versus the EUR and the USD.
The BOC left its rate at 1%, as was predictable by the Forex Market associates.The Bank clarified its anxieties about the big exchange in the agreement-the United States Dollar.
Statement: The unrelenting strength of Canadian Dollar could even create larger headwinds for the economy of Canada, giving some additional downward thrust on the inflation through feeble than predicted to be whole exports and bigger falls in import prices.
Analysts thinking are like, BOC will surely raise the rates of interest by the July of this year because Canada's economy is recovering with great speed. Central Banks growth forecast has increased to 2.9% from 2.4%. It has been said that nations all strength will get recovered and again it will reach in the top level by 2012-middle. Now economic recovery was supported by the increasing exports and business deals.
US Dollar raised to 0.9631 from 0.9565 based on previous trade session.
