The Canadian dollar edged higher against the world's reserve currency on Wednesday in the aftermath of the Bank of Canada deciding to leave borrowing costs intact, Bloomberg reports.
The central bank of the nation hosting the globe's 11th-largest economy also noted that the amount of its stimulus program is appropriate. Also propelling the loonie on Wednesday was economic data indicating growth in both Australia and China.
"Canada is riding the coattails from overnight positive data," foreign exchange director Brad Schruder with Bank of Montreal told the news source on Wednesday. "I think this is more a story of the Canadian dollar is just being caught up in overall positive effects coming out of Asia."
Gains for the loonie were as high as 0.3 percent against the greenback as the Canadian dollar surged to its highest rate in nearly four weeks against its southerly rival.
The Bank of Canada, during a Wednesday morning policy meetings, decided to leave interest rates at 1 percent, according to Reuters. Almost immediately thereafter, the loonie gained traction on foreign exchange markets against its rival currencies.
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