Following Bank of Canada's announcement this morning that the interest rate would be raised from 0.50% to 0.75, Canada's currency rallied close to 2% against the U.S. dollar. At 1:35 p.m. EST today, the USD/CAD currency par was trading as low as 1.26807 - a 13-month high for the Canadian dollar.
In its press release, Canada's central bank said it decided to raise interest rates due to the strengthening global economy, particularity the U.S. economy, which the bank said has been "growing at a solid pace, underpinned by a robust labour market and stronger investment."
This interest rate increase was largely expected by the market, as Senior Deputy Governor at the Bank of Canada, Carolyn Wilkins, made the case for reduced economic stimulus and higher interest rates in her speech to the The Associates of the Asper School of Business in Winnipeg, Manitoba, last month.
"The data show that more than 70 per cent of industries have been expanding and the labour market continues to improve.," said Wilkins in June.
Similar statements were also made by the Bank of Canada (BofC) today regarding the improving outlook for the Canadian economy, "Growth is broadening across industries and regions and therefore becoming more sustainable. As the adjustment to lower oil prices is largely complete, both the goods and services sectors are expanding.," said BofC today.
Since the start of May, 2017, when the CAD was trading at a 15-month low of 1.37575, the Canadian dollar has re-gained close to 8% of its value:
Original article by @Techwizardry, follow me for the latest updates in the cryptocurrency & financial sphere!
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