TORONTO _ The Canadian dollar inched higher on Thursday morning, holding onto a slightly more optimistic tone from the Bank of Canada's latest interest rate decision.
The loonie moved ahead 0.03 of a cent to 88.01 cents US shortly before stock markets opened.
On Wednesday, the central bank announced it would keep its key interest rate unchanged at one per cent and noted that positives in the economy have mostly offset the negatives.
The currency ``has retained an offered tone in the aftermath of the BoC interest rate decision, with subtle changes to the characterization of economic conditions being more upbeat than expected,'' wrote RBC Dominion Securities chief technical analyst George Davis in a note.
``The Canadian dollar has been able to buck the broader-based (U.S. dollar) strength witnessed over the past 24 hours.''
Both the U.K. and European central banks decided to leave their key interest rates unchanged in scheduled announcements Thursday morning.
European Central Bank has left its benchmark interest rate
unchanged at 0.05 per cent and the
Bank of England decided to keep its main interest rate at a record
low 0.5 per cent to sustain growth and nudge up
inflation.
European Central Bank president Mario Draghi also provided another hint that the ECB is ready to back a big monetary stimulus early next year.
Draghi said the bank will reconsider the success of current stimulus measures, and the effect of lower oil prices, on the European economy.
The comments have been taken as a sign the ECB bank could launch new stimulus measures, such as large-scale purchases of government bonds, though he said a decision on any steps wouldn't be taken until ``early next year.''
On the commodity markets, the January crude contract on the New York Mercantile Exchange is 56 cents lower to US$66.82 a barrel.
February bullion is up $2.80 at US$1,211.50 an ounce, while March copper is ahead five cents at US$2.92 a pound.
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