Canada Dollar Weakens After US Rate Hike

The Canadian dollar weakened on Wednesday in response to interest rate news from the United States. The US Federal Reserve raised its key overnight interest rate for the first time in three years, setting it between 3.75 and four per cent. This move is likely to have further implications as accompanying statements suggested more increases are likely to control inflation.

The Canadian dollar settled at US$0.7170 or US$1=C$1.3947, a decline from Tuesday's close of US$0.7185 or US$1=C$1.3917.