Canadian Dollar Stuck Near Six-Week Low Amid Widening Interest Rate Gap

The Canadian dollar held steady near its six-week low against the US dollar on Thursday, as a widening interest rate gap between the Federal Reserve and the Bank of Canada supported the greenback.

According to data, the Canadian dollar was little changed at C$1.3985 per US dollar, or 71.51 US cents, after touching its weakest level since August 7 at C$1.4001.

Darren Richardson, chief operating officer at Vantry Capital Inc, attributed the support for the US dollar to the interest rate differential between the two countries, stating that 'the interest rate differential between the US and Canada is certainly providing support for the US dollar.'

Richardson also noted that the 1.40 level represents a key technical level in the short term.