The Canadian dollar strengthened at almost a three-year high against its main rival, the US dollar after the Bank of Canada (BOC) decided not to cut interest rates at its police meeting last night.
The BOC sets the interest rate at a low of 0.25% and promises to continue to support the economy with its quantitative easing program.
Policy makers are also issuing better projections for 2022 following the launch of the Covid-19 vaccine, the implementation of fiscal stimulus, stronger foreign demand and higher commodity prices.
Following better projections from the central bank, this has led to a strengthening for the Canadian dollar which was also supported by the weakness of the greenback dollar.
The Loonie did not seem to be impressed after US President Joe Biden officially announced that he was withdrawing approval for the Canadian Keystone XL pipeline.
This may be because investors have found out in advance through a report released two days before the Biden administration took over the White House.
This cancellation is the second time that the Barack Obama administration has canceled the $ 8 billion project in 2015. In 2017, former President Donald Trump resumed the project.
