Loonie Weakens As Bank Of Canada Says Drop In Exports 'larger Than Expected'

By Markets MarketWatch Pulse

The Canadian dollar softened against its U.S. rival on Wednesday after the Bank of Canada said second-quarter gross domestic product was affected by a drop in exports that was "larger and more broad based than expected." Though the bank left its benchmark interest rate steady at 0.5%, analysts said weak exports are a sign that the Canadian economy might require more monetary easing to drive stronger growth. The U.S. dollar rose to C$1.2896 after the statement's release, up 0.3% on the day.

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