Wednesday saw the Canadian dollar drop to its lowest value in eight months against its southerly rival as the Bank of Canada prepares to convene, Bloomberg reports.
The Wednesday meeting is likely to see policy makers leave interest rates unchanged. Mark Carney, governor of the central bank, said in late February that rate hikes are not as important when development and growth are moving at a reduced pace.
"The Bank of Canada is going to be somewhat cautious in its assessment of the end of 2012 and maybe revising down some of its outlook for 2013," chief macro strategist David Tulk with the TD Securities unit of Toronto-Dominion Bank in Toronto told Bloomberg on Wednesday. "We think the bank still does want to send the message to the market that the overnight rate will move higher, but maybe not for some time."
But some analysts believe the Bank of Canada soon will approve a hike on borrowing costs, according to The Canadian Press.
Economic data like reduced retail sales late last year have pulled down the Canadian dollar about three cents against the U.S. dollar since January, the Canadian Press reports.
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