The Canadian dollar strengthened while Canadian bond yields ticked lower on Wednesday after The Bank of Canada left its benchmark interest rate unchanged at 0.5%. In a brief policy statement, the central bank said the Canadian economy is growing in line with expectations, though exports -- highlighted by the central bank as a key driver of growth -- have continued to disappoint. The central bank said that growth was robust in the third quarter, following a weak first half, though it expects the pace of growth to moderate in 2017. One U.S. dollar bought C$1.3268 in recent trade, down 0.1% from C$1.3284 late Tuesday. The yield on the 10-year Canadian government bond fell 3.5 basis points to 1.596%.
Continue Reading Below
Copyright © 2016 MarketWatch, Inc.