The monetary unit of Canada benefited from the announcement of the U.S. Federal Reserve that it would continue its strategy to spur the globe's largest economic system, Reuters reports.
As two days of meetings adjourned on Wednesday, the policy-making arm of the U.S. Federal Reserve announced it is going to continue Operation Twist. Set to complete at the end of June, the program now will continue through the year.
The loonie "is following what it normally follows, which is the tenor of risk and the move lower in equities has created a better bid for the (U.S.) dollar and by extension a better bid for dollar/Canada as well," foreign exchange managing director Jack Spitz with National Bank Financial told Reuters.
But before the loonie climbed on Wednesday after the Federal Open Market Committee announcement, it already had been on the upswing. It had marked its highest value in four weeks against its southerly rival.
But those gains were tempered by losses to crude oil, which is the top export of the nation whose economy is based on shipping its natural resources, according to Bloomberg.
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