Canada Stocks Drop as Loonie Rises Ahead of Rate Decision

Stock index futures tracking Canada's main equity benchmark slid lower on Wednesday, following a sharp sell-off in the previous session.

The S&P/TSX Composite Index futures fell 0.14% to 2,103.70 points after the index tumbled 1.23% on Tuesday, closing at a near one-month low.

The Canadian dollar edged higher against its US counterpart, trading around 1.3980 per greenback, with energy-market support offsetting safe-haven demand for the US dollar.

The Bank of Canada's decision to hold its key benchmark rate steady at 2.25% is expected, with analysts anticipating Governor Tiff Macklem will maintain a balanced posture due to core inflation remaining near 2% and the need to cushion domestic economic activity against cross-border trade friction.