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A Canadian dollar.JONATHAN HAYWARD/The Canadian Press

The Canadian dollar continued to advance Wednesday amid increasing doubt that the Bank of Canada is set to deliver another interest rate cut.The loonie gained 0.47 of a cent to close at 80.5 cents (U.S.).

The loonie had advanced half of a cent on Tuesday following remarks from Bank of Canada Governor Stephen Poloz that were interpreted as lessening chances of the bank following up a quarter-percentage-point rate cut in January with another decrease as soon as next week.

Poloz said last month's surprise rate cut gives the Bank of Canada time to figure out how best to steer the country back toward stability as a recent collapse in oil prices ripples across the economy.

He added that the rate cut in January, which reduced the central bank's overnight rate to 0.75 per cent, has given policy makers more confidence that the economy should be back on a more sound footing by the end of next year, rather than some time in 2017.

Traders also monitored a second day of congressional testimony from Federal Reserve chair Janet Yellen. She told the Senate finance committee on Tuesday that the U.S. central bank will continue to be patient in deciding when to raise interest rates. And she added that before rates go up, the central bank would drop this assurance. There has been much speculation the bank could move on raising rates as early as June.

Oil prices ticked $1.71 higher to $50.99 a barrel following five days of losses even as the U.S. Department of Energy says American inventories rose 8.4 million barrels last week, about double the amount expected.

Metals were also higher with April gold up $4.20 to $1,201.50 an ounce while March copper was up a cent at $2.66 a pound.

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Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 29/03/24 9:17am EDT.

SymbolName% changeLast
CADUSD-FX
Canadian Dollar/U.S. Dollar
-0.02%0.7384

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