Canadian dollar rallies despite somber Bank of Canada assessment of oil and growth
The Canadian dollar jumped after the Bank of Canada Wednesday left key interest rates unchanged at 1.75% but said further interest rate hikes were necessary to achieve its inflation target. In a statement, the BOC revised down its 2019 gross domestic product projection to 1.7% -- 0.4% slower than in the October outlook -- and said the drop in oil prices hurt Canada's economic outlook. Against that negative backdrop, non-energy and exports are expected to grow steadily, and will be helped by a weaker Canadian dollar. The loonie, as Canada's currency is also called, jumped versus its U.S. rival in response. The greenback last bought C$1.3200, down 0.6%, its lowest level since early December. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.