Futures Market News
Canadian dollar benefits from ECB rate slash
Jul 05, 2012 03:24 PM
The Canadian dollar on Thursday surged to its highest value in two years against the common currency of the European Union in response to the European Central Bank slashing interest rates, according to Bloomberg.
The loonie benefited from the expected move by the central bank of Europe, which acted as part of an effort to boost the hobbled economies of the 17-nation bloc. The currency of Canada also climbed to its highest rate against the world's reserve currency in about seven weeks.
"We're not particularly long [on] the Canadian market," portfolio manager Ed Devlin with Pacific Investment Management Company of London in Toronto told Bloomberg. "I'm pretty defensive on the front end. There is not a lot to like about interest rates down here."
Shortly after midday on Thursday, the loonie had advanced 1.1 percent against the 17-nation monetary unit, touching its highest price since June 2010.
Two additional banks took action on Thursday, according to The Canadian Press. The People's Bank of China cut interest rates while the Bank of England deployed another round of monetary easing to spur the economy.
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