EUR/CAD Drops to Two-Year Low

The Canadian dollar reached the highest level in two years against the euro today as the European Central Bank decreased its key interest rate. The Canadian currency stayed flat versus the US dollar.

The euro was weaker against other majors today and the loonie (as the Canadian currency is nicknamed) was not an exception. The wave of interest rate cuts among central banks spurred worries that the global economy is slowing. Yet the Canadian currency remained relatively stable even amid such concerns as Canada’s economy looks robust and the Bank of Canada is not likely to slash its main interest rate, which stayed unchanged at 1 percent since September 2010.

EUR/CAD slumped from 1.2683 to 1.2552 as of 19:01 GMT and touched 1.2529 earlier today — the was the lowest level since June 22. USD/CAD stayed flat at 1.0137.

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