The Canadian dollar fell sharply on Wednesday in advance of a highly anticipated decision by the U.S. Federal Reserve regarding interest rates due in the afternoon.
The loonie was down 0.47 of a cent at 72.32 cents U.S. The Fed is widely expected to raise interest rates this afternoon, widening the gap in monetary policy between Canada and the United States.
“We could see considerable volatility” in the movement of the loonie before and after the 2 p.m. ET announcement from the Fed, Rahim Madhavji, foreign exchange strategist at Knightsbridge in Toronto, said.
MORE: Latest coverage — the plunging loonie
Oil’s influence
On the commodity markets, the January crude contract was down 51 cents at US$36.84 per barrel.
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