Canada Dollar Falls to Parity as BOC Says Rate Boost Less Urgent
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The Canadian dollar fell to parity against its U.S. counterpart after the Bank of Canada said the need to raise interest rates is less urgent as the economy will take longer to reach full output.
The currency dropped to a two-month low as the central bank led by Governor Mark Carney pared its forecast for economic growth this year to 2 percent from an October prediction of 2.3 percent. It weakened against 15 of its 16 most-traded peers after the bank held its benchmark interest rate at one percent, matching the predictions of 27 economists surveyed by Bloomberg.