Loonie, Canadian bond yields rise as Bank of Canada leaves rates unchanged
The U.S. dollar softened against its Canadian rival on Wednesday after the Bank of Canada left its benchmark policy rate unchanged at 0.5%. The greenback sunk to a session low at C$1.3063, compared with C$1.3107 late Tuesday in New York, before paring its decline to $1.3064 in recent trade. Canadian bond yields inched higher, with the 10-year rising two basis points to 1.220%. In a quarterly outlook released Wednesday, the Bank of Canada lowered its projections for growth and inflation, and also pushed back its expectations for closing the country's output gap until mid-2018. Bank of Canada Gov. Stephen Poloz will hold a press conference at 11:15 a.m. Eastern Time.
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