The monetary unit of Canada on Tuesday lost value against the world's reserve currency on Tuesday as policy makers with the U.S. Federal Reserve convened for two days of meetings that are poised to include discussion about the future of the monetary stimulus programs to spur the world's largest economy, Bloomberg reports.
Fed Chair Ben Bernanke is slated to conduct a press conference following adjournment on Wednesday of the Federal Open Market Committee. The loonie often is impacted by U.S. financial and economic developments because of the strong relations for commerce and trade between the nations.
"It's more (U.S.) dollar than Canada specifically in that the (U.S.) dollar is up against all of the majors today," FX strategy global head Adam Cole with RBC Capital Markets in London told Reuters on Tuesday. "I think we're still seeing people shuffling positions around ahead of the FOMC meeting tomorrow. There hasn't been a lot in the way of hard news to digest."
The loonie lost value amid economic data noting housing starts last month in the U.S. climbed.
The Bernanke press conference is forecast to answer many questions swirling about the markets regarding whether the Fed will taper stimulus measures, according to Reuters.
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