Loonie rises after BoC holds interest rates

The Canadian dollar rose against most currencies on Wednesday, following the Bank of Canada's widely expected decision.

The Bank of Canada announced today holding the interest rate at 0.25% unchanged, and hinted that will likely remain for a period of time in the bank's efforts and policies to ease the coronavirus economic impact.

The bank stated that the economic data show the coronavirus impact on the global economy amid uncertainty about a potential recovery, and heading toward deep recession.

However, financial conditions have slightly improved and commodity prices rose in the last few weeks, after a wide-scale drop due to the health crisis, which signals a potential recovery after the economic reopening measures.

As of 16:56 GMT, CAD/USD rose 0.2% to 0.7415, after the pair hit an intraday high of 0.7419 and a low of 0.7368.