Wednesday, July 11, 2007

Canada's Dollar Falls as Investors Reduce Bets on Interest-Rate Increases

(Bloomberg) -- The Canadian dollar fell the most in
more than a week as investors pared bets on the future interest-
rate increases by the Bank of Canada.

The currency has dropped from a 30-year high set this week
after the central bank yesterday raised its benchmark lending
rate to 4.50 percent and said ``some modest'' further increase
in rates may be needed. Investors have been betting on a series
of rate boosts as inflation remains higher than the Bank of
Canada's target.


Read more at Bloomberg Currencies News

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