BLBG: Canada’s Dollar Little Changed Before Bank of Canada Decision
Canada’s currency was little changed against its U.S. counterpart before the country’s central bank announced its decision on interest rates.
“Everyone’s waiting to see what happens at 9 a.m.,” said Steve Butler, director of foreign-exchange trading in Toronto at Scotia Capital Inc., a unit of Canada’s third-largest bank.
The Canadian dollar traded at C$1.2383 per U.S. dollar at 7:56 a.m. in Toronto, from C$1.2391 yesterday. One Canadian dollar buys 80.75 U.S. cents.
Thirteen of 25 economists surveyed by Bloomberg forecast policy makers will leave the key overnight rate unchanged at a record low 0.5 percent. Twelve predict a 25 basis point reduction. The central bank last month cut the benchmark rate from 1 percent.
“The overall market doesn’t seem to be able to make up its mind,” said Jonathan Gencher, Toronto-based director of currency sales at BMO Capital Markets, a unit of Canada’s fourth-largest bank.
Canadian Finance Minister Jim Flaherty said yesterday in Chicago that while he’s seeing “encouraging signs” in the economy, 2009 will be a “difficult year” and the country is “still in a serious recession.”
