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Canadian Dollar Posts Biggest One-Day Gain in Six Years on Fed

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The Canadian dollar posted its biggest one-day gain in six years after the Federal Reserve slashed projections for U.S. interest rates, bringing the U.S. central bank’s outlook closer to expectations for the Bank of Canada.

The currency rallied from a six-year low versus the greenback after U.S. central bank officials lowered the median estimate by almost half for their target rate this year. The Bank of Canada cut its own benchmark rate once this year to counteract the effects of falling oil, and economists in a Bloomberg survey predict another cut by mid-year.