Loonie on the rise after Bank of Canada’s latest rate announcement

The energy sector helped lift Canada’s main stock index in late-morning trading, while the loonie flew higher after the latest rate announcement by the Bank of Canada.

The Canadian central bank kept its key interest rate on hold at 1.25 per cent, but its comments increased market expectations that it would raise the rate in July. The Canadian dollar was trading at 77.66 cents U.S., up from an average value of 76.92 cents U.S. on Tuesday.

The S&P/TSX composite index was up 51.68 points to 15,974.29, after 90 minutes of trading.

In New York, the Dow Jones industrial average was up 187.29 points to 24,548.74. The S&P 500 index was up 24.66 points to 2,714.52 and the Nasdaq composite index was up 60.18 points to 7,456.77.

The July crude contract was up $ 1.41 to $ 68.14 (U.S.) per barrel and the July natural gas contract was down one cent to $ 2.89 per mmBTU.

TORONTO STAR

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