(Fergal Smith – Reuters)
The Canadian dollar rallied against its broadly weaker U.S. counterpart on Wednesday, rebounding from an earlier five-month low after comments from Federal Reserve Chairman Jerome Powell that were seen as dovish by some investors.
Powell appeared to signal the U.S. central bank was nearing an end to its interest-rate hikes, saying the Fed’s policy rate was now “just below” a level that neither brakes nor boosts a healthy economy.
“Today’s move (in the Canadian dollar) is a result of changing expectations around the Federal Reserve,” said Tim Alt, director, rates & currencies at Aviva Investors in Chicago. Click here to read more.
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