The Canadian dollar dipped lower after witnessing a decision by the Central Bank of Canada (BOC) police notice that the market did not expect.
At the June session of the police conference, the BOC decided to keep the benefit rate unchanged at 0.25% and also continue its program of purchasing royal bonds worth C$3 billion each week.
After the tapering by the central bank in April, the market expects that the BOC will continue to take such steps for the month.
However, the central bank's latest decision did not live up to market expectations, and this at the same time pushed the Canadian dollar down against the US dollar.
In addition to the baseline setting, the central bank also said that the country's economy will recover more strongly on the back of an ever-increasing Covid-19 vaccination program, and this will be followed by more coronavirus barriers being re-lifted.
Canada took the cautious step of reopening its border barriers to fully vaccinated travelers beginning in early July.
In addition, Canadian dollar trades were also limited by the initial decline in crude oil prices after hitting their latest annual highs in the previous session.
