Canada’s dollar surged after the nation’s central bank delivered a bigger-than-expected interest-rate hike, catapulting it ahead of major developed-market peers on the path toward tighter monetary policy.
The so-called loonie climbed against all of its Group-of-10 peers, advancing as much as 0.7 per cent against its US counterpart to CUS$1.2937 per greenback. Short-end Canadian rates leaped after the Bank of Canada shocked traders with a 100-basis-point move in its benchmark rate, extending an earlier advance fueled by hotter-than-anticipated US inflation figures. The two-year bond yield rose as much as 19 basis points to 3.4 per cent.
The actions of the BOC “will really help shield the loonie from further downside pressures stemming from commodity and equity benchmarks,” said Simon Harvey, an analyst at Monex Europe Ltd. The dollar-loonie pair has struggled to make inroads above 1.3, and he thinks this dynamic “will persist over the coming weeks.”
The decision came after consumer-price inflation numbers from the US added fuel to bets that the Federal Reserve is also likely to be firm in its hawkishness, with traders jacking up bets on the prospect that the US central bank might also lift by 100 basis points this month.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank of Canada hikes rate to 2.5% in bid to crush inflation - BNN BloombergThe Bank of Canada hiked interest rates by a full percentage point, a surprise move that supercharges efforts to withdraw stimulus before four-decade-high inflation becomes entrenched.
Read more »
The Daily Chase: Bracing for big Bank of Canada hike; U.S. inflation hits 9.1% - BNN Bloomberg🏦Awaiting BoC interest rate decision 📈U.S. inflation surges by 9.1% 📱Rogers pledges five days of service credits Here's what you need to know today:
Read more »
Canaccord upgrades Air Canada amid 'attractive buying opportunity' - BNN BloombergAn analyst at Canaccord upgraded their Air Canada rating to a buy on the premise that the airline’s recent share decline has now created an “attractive buying opportunity not seen since the heart of the pandemic.”
Read more »
Bank of Canada readies rare 75-basis-point hike - BNN BloombergThe Bank of Canada is set to deliver a super-sized interest rate hike this week, as it accelerates efforts to withdraw stimulus from an overheated economy and rein in soaring inflation.
Read more »
Air Canada and Emirates sign strategic partnership, plan code-share deal - BNN BloombergAir Canada and Emirates have signed a strategic partnership agreement and plan to establish a code-share relationship later this year.
Read more »
Amid full-point hike, BoC adjusts forecasts to Canadian GDP, inflation - BNN BloombergAlongside a surprising 100 basis point increase to its key policy rate, the Bank of Canada also adjusted its forecast for Canadian inflation and economic growth on Wednesday.
Read more »