During New York afternoon deals on Thursday, the US currency traded further lower against its Canadian counterpart after the announcement that the Federal Reserve will implement a third round of quantitative easing.
The Federal Reserve took drastic new steps to stimulate the sluggish U.S. economy on Thursday, offering to buy $40 billion of agency mortgage-backed securities each month, starting Friday.
In addition to embarking on a third round of quantitative easing, the Fed also extended its vow to keep interest rates at rock-bottom rates to mid-2015. Policy makers also decided to keep in place its Operation Twist program swapping short-term bonds for longer-term assets.
The Fed also release its economic forecasts and it said that Fed downwardly revised its 2012 U.S. GDP growth forecast to 1.7-2.0% and upwardly revises 2013 U.S. GDP growth forecast to 2.5-3.0%.
At 2:25 pm ET, the greenback declined to more than a 13-month low of 0.9668 versus the loonie from early mornign session's high of 0.9776.
by RTT Staff Writer
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