The CAD/CHF currency pair rebounded from a fresh low of 0.5598, its weakest level on record, on Wednesday ahead of the outcome of the Bank of Canada’s policy meeting later today.
The Bank of Canada is expected to keep its benchmark interest rate intact at 2.25%.
The minutes from the BoC’s December meeting showed that policy makers agreed the “current stance is appropriate” and noted it was “difficult to predict the timing or direction of the next rate move.”
The BoC Governing Council said it viewed the current policy rate about right to keep inflation near 2%, while supporting the economy through this period of structural adjustment.
Officials also reaffirmed that they were ready “to respond if the outlook changes materially.”
Meanwhile, the Swiss Franc has strengthened versus major peers, as investors have been reassessing traditional safe havens.
As confidence in the US Dollar and the Japanese Yen as safe-harbor assets weakens, traders seemed to have shifted toward the Franc.
Still, a stronger currency could raise deflation risks in Switzerland, while investors are also assessing the possibility of the SNB stepping in to restrain excessive Franc strength.
The CAD/CHF currency pair was last up 0.52% on the day to trade at 0.5637.
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