Canadian dollar plunges to post-recession low after central bank cuts key interest rate

TORONTO – The Canadian dollar plunged to a post-recession low after the Bank of Canada cut a key interest rate and lowered its forecast for the economy.

The loonie was down more than a full U.S. cent Wednesday afternoon at levels not seen since March 2009, when Canada was in the midst of a deep recession.

At one point, Canada's dollar was worth about 77.29 cents US, down 1.2 cents from the previous close, but had been even lower earlier in the day.

The S&P/TSX composite index was up 85.32 points at 14,684.72.

The Dow Jones industrial average was up 39.55 points at 18,017.23, the Nasdaq index rose 25.79 points to 5,097.30, and the S&P 500 advanced 8.66 points to 2,106.26.

On the commodity markets, the August gold contract fell 60 cents to US$1,154.80 an ounce, the August crude contract was up five cents at US$52.25 a barrel and the August contract for natural gas was down two cents at US$2.84.