The Canadian dollar fell on Friday, after the Governor of the Bank of Canada Stephen Poloz comments.
Poloz dismissed the possibility to inject additional stimulus to push inflation above the current levels.
The governor pointed out that bank's possession of securities and bonds will be lowered when there are signs that the economy is picking up and inflation is rising.
Poloz also stressed the commitment to take the necessary measures to to avoid a credit crunch and counter a deflationary shock in the economy due to the coronavirus pandemic.
Bearing in mind that the Canadian economy is suffering its sharpest contraction since the Great Depression, which forced the BoC to cut interest rates near zero in March.
As of 16:26 GMT, CAD/USD fell by 1.2% to 0.7094, after the pair hit a high of 0.7183 and a low of 0.7083.