The U.S. dollar fell to two-week lows against its Canadian counterpart on Wednesday, after the Bank of Canada left interest rates unchanged and as oil prices boosted demand for the commodity-related Canadian currency.
USD/CAD hit 1.3274 during U.S. morning trade, the pair’s lowest since March 31; the pair subsequently consolidated at 1.3295, shedding 0.23%.
The pair was likely to find support at 1.3275, the low of March 30 and resistance at 1.3359, Tuesday’s high.
In a widely expected move, the BoC left the benchmark interest rate unchanged at 0.5%.
The Canadian dollar was supported by higher oil prices on Wednesday amid reports of a potential extension to the OPEC supply cuts.
Meanwhile, markets were still jittery a U.S. Navy strike group was sent earlier in the week toward the western Pacific – a force U.S. President Donald Trump described as an “armada”.
North Korean state media warned on Tuesday of a nuclear attack on the U.S. at any sign of American aggression.
Meanwhile, U.S. Secretary of State Rex Tillerson was expected in Moscow on Wednesday where he was set to meet with his Russian counterpart Sergey Lavrov to discuss Ukraine, counterterrorism, bilateral relations and other issues, including the Korean Peninsula and Syria.
Separately, the United Nations Security Council was set to host a meeting regarding the ongoing Syrian conflict.
The loonie was higher against the euro, with EUR/CAD declining 0.43% to 1.4070.