Canadian Currency Rises as Central Banks Lower Dollar Swaps Rate

The Canadian dollar extended its advance as central banks including the Bank of Canada and the Federal Reserve agreed to reduce the interest rate on dollar liquidity swap lines.

“The global central banks think that there is something to be done to improve liquidity, and this is what they’re doing to improve dollar funding costs, and that’s negative for the dollar because it’s easier to sell the dollar against everything,” said Andrew Wilkinson, chief economic strategist at Miller Tabak & Co. in New York, referring to the U.S. currency.

To contact the reporter on this story: Allison Bennett in New York at abennett23@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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