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

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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