Canadian Dollar Down on U.S. Discount Rate

After touching the highest rate in February on renewed risk appetite, the Canadian dollar retreated versus its U.S. counterpart after the Federal Reserve raised its discount rate for the first time in three years, allowing the greenback to be more attractive than the loonie in forex markets.

The Canadian dollar ended a winning streak against the dollar and erased most of this week’s gains versus the U.S. currency after the Federal Reserve discount rate was hiked by U.S. central bankers, attracting more investors towards the wealthiest nation in the world and fueling speculations that stimulus measures will be lift in the country.

USD/CAD traded at 1.0488 as of 03:06 GMT from a previous intraday rate of 1.0479.

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