C$ declines to 140-year low

PUBLISHED : Friday, 23 January, 1998, 12:00am
UPDATED : Friday, 23 January, 1998, 12:00am

The Canadian dollar fell to the lowest level against its US counterpart since it was created in 1858, dropping to 69.04 US cents in early trading. Its foray into record-low territory came even as the Bank of Canada bought Canadian dollars to steady its value. The Canadian dollar retreated in the morning after a report said inflation rate declined 0.1 per cent last month from November to an annualised rate of 0.7 per cent, lowering anticipation that the central bank would lift its bank rate to shore up the Canadian dollar. The official rate for overnight loans to banks is 4.5 per cent. The Canadian dollar's decline prompted the central bank to buy the currency to temper its fall. The bank bought Canadian dollars at 69.04 US cents, traders said.