Bank of Canada Warns about Canadian Dollar’s “persistent strength” @ Forex Factory

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Bank of Canada Warns about Canadian Dollar’s “persistent strength”

The USD CAD closed higher on Tuesday after the Bank of Canada left interest rates unchanged but warned about the Canadian Dollar’s “persistent strength” and its possible negative impact on the economy. Since October the BoC has been issuing statements regarding the rapid rise in the Canadian Dollar and its potential detrimental effect on the recovering Canadian Dollar. Warnings have ranged from mild to stern and some have come from Prime Minister Harper. In this case, the BoC set a new schedule for its asset-buyback program as it attempts to boost liquidity and support economic growth. This action of flooding the market with cash should be friendly toward the USD CAD. Full Story

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Submitted Jan 19, 2010 7:00pm

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