The Canadian dollar ignored an OECD report predicting modest economic growth next year and rebounded on Thursday from an early drop as market players figured China's unexpected interest rate hike would not immediately dampen demand for commodities.
The Canadian dollar closed at C$1.2237 to the US dollar, or 81.74 US cents, up from C$1.2263, or 81.55 US cents, at Wednesday's close.
Canadian gross domestic product should expand around 3 percent this year and 3.5 percent next year, the Organisation for Economic Co-operation and Development said in a report that raised forecasts from previous expectations of 2.8 percent this year and 3.3 percent in 2005.
The Paris-based OECD said the Bank of Canada would need to continue removing monetary stimulus to avoid a pickup in inflation.
Comments
Comments are closed.