Canada's dollar rose to the highest since 1960 before the Federal Reserve's interest-rate meeting where economists forecast borrowing costs will be cut to prevent the world's largest economy from falling into a recession.
Canada's dollar rose to $1.0496 at 4:48 p.m. in Toronto, from $1.0482 yesterday. It touched $1.0511, the highest since March 28, 1960. One U.S. dollar buys 95.26 Canadian cents.
The U.S. central bank is expected to cut borrowing costs a quarter-percentage point to 4.5 percent tomorrow, according to interest-rate futures traded on the Chicago Board of Trade. That would eliminate the U.S. benchmark rate advantage over Canada. Bankers' acceptances futures suggest the Bank of Canada will keep the key lending rate unchanged at 4.5 percent this year.
``The market is in a holding pattern before the U.S. rate decision,'' said Matthew Strauss, a senior currency strategist at RBC Capital Markets in Toronto. ``If the Fed's statement is more dovish than the market expects, it will fuel more gains in the Canadian dollar.'' Strauss said the currency may sustain its gains around the $1.05 level by the end of this year.
Read Complete Story
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment