By Commodity News Service Canada
WINNIPEG, March 19 – The Canadian dollar was weaker at midday Wednesday, dropping to its lowest levels relative to its US counterpart in over four years as the currency markets continued to react to recent comments made by Bank of Canada governor Stephen Poloz.
At 11:41 CDT, the Canadian dollar was trading at US$0.8941 or US$1=C$1.1184 which compares with Tuesday’s close of US$0.8979 or US$=C$1.1137.
Poloz had a generally dovish outlook on the Canadian economy in a speech Tuesday, and the fact that he would not rule out an interest rate cut continued to weigh on the Canadian dollar on Wednesday.
Positioning ahead of a policy statement from the US Federal Reserve later in the day was also a feature.
There were no significant domestic economic releases on Wednesday. The market reaction to the resignation of Canadian finance minister Jim Flaherty on Tuesday was largely neutral.
At midday Wednesday the Toronto Stock Exchange was weaker, down 28.36 points at 11:41 CDT to sit at 14,340.61.
