Canadian dollar rises despite BoC's weak outlook

The Canadian dollar rose Wednesday, despite negative economic outlook by the Bank of Canada following its rate and monetary policy decisions.

The Bank of Canada announced today to hold the interest rate at 0.25% unchanged, amid the lingering uncertainty about the economy and financial markets due to the coronavirus crisis.

The bank also projected that the Canadian GDP will shrink by 7.8% in 2020, and kept its forecasts for the inflation rate at 0.6%, and expected it to rise to 1.2% in 2021 and to 1.7% in 2022.

This came as the BoC is cooperating with the Canadian government to support the economy from the coronavirus effects, with a second wave of infections in mind, especially after the US record daily spike of infections.

As of 17:09 GMT, CAD/USD rose 0.8% to 0.7402, after a high of 0.7405 and a low of 0.7342.