Loonie bounces back against U.S. dollar

The value of the Canadian dollar recovered against the world's reserve currency on Thursday, according to Bloomberg.

Pulling down the loonie was decreasing prices of commodities as the nation's economy is based on the export of its natural resources. But the Canadian dollar had been enjoying an upward tick as a result of the U.S. Federal Reserve stating on Wednesday it will prolong Operation Twist, a strategy of spurring the globe's largest economy.

"The Fed did exactly what the market was expecting," head of currency strategy for Europe Steven Saywell with BNP Paribas SA in London told the nes service. "There's already been a significant risk rally in the past two weeks, and we're taking a breather."

Mark Carney, governor of the central bank of Canada, is set to speak in Nova Scotia on Thursday, which is likely to impact the performance of the Canadian dollar.

The Canadian Press reports acquiring mortgages will be more challenging for Canadians who hold a restricted amount of savings after a Thursday announcement by Finance Minister Jim Flaherty. The announcement will mark the fourth time Canada has restricted mortgage rules in four years.