TORONTO – Canada’s dollar fell sharply after a surprise announcement by Japan’s central bank overnight but bounced up later after fresh economic data was released early this morning in Ottawa and Washington.
The loonie’s value fell sharply just after 5 a.m. ET but regained most of its decline about four hours later, after Statistics Canada and the U.S. Commerce Department released reports on economic growth.
The Canadian dollar traded at 71.31 cents US at 10:15 a.m.
The loonie had traded as high as 71.58 cents US overnight before the Bank of Japan unexpectedly cut a key interest rate to negative 0.1 per cent. The dollar later dropped below 70 cents US briefly before rebounding.
Equity markets rose in Asia, Europe and North America after the Bank of Japan’s move.
The Toronto Stock Exchange’s S&P/TSX Composite index gained 78.37 points to 12,670.30 as North American markets about an hour after the opening bell.
In New York, the Dow Jones Industrial average jumped 213.3 points to 16,282.97, the broader S&P 500 index advanced 23.02 points to 1,916.38 and the Nasdaq rose 56.86 points to 4,563.54.
The price of a benchmark barrel was above US$34 a barrel. The March futures contract was at US$34.26, up $1.04.