Canadian dollar loses, TSX gains after Bank of Canada rate cut

The Canadian dollar fell to its lowest level in six years on Wednesday, after the Bank of Canada cut its key interest rate by 0.25 per cent to just 0.5 per cent in an attempt to stimulate the sluggish Canadian economy.

The loonie closed at 77.40 cents to the U.S. dollar, down 1.09 cents from Tuesday's closing value.

The Toronto Stock Exchange gained 62.88 points, closing at 14,662.28.

U.S. stock markets fell slightly. Energy stocks suffered as oil prices dropped more than two per cent in the face of a diplomatic accord that could eventually lift economic sanctions on Iran, allowing it to export more crude into a world market already awash with oil.

The Dow Jones Industrial Average lost 3.41 points to close at 18,050.17. The Nasdaq Composite fell by 5.95, closing at 5,098.94. The S&P 500 closed at 2,107.40, down 1.55.

Investors also faced uncertainty about the future of the eurozone, as Greece's parliament prepared to vote on a controversial deal that would bail Greece out in exchange for additional austerity measures. In Athens, demonstrations briefly turned violent as protesters threw Molotov cocktails at police.

U.S. Federal Reserve chair Janet Yellen told a House panel that the U.S. will likely increase its key interest rate by the end of the year.

"If the economy evolves as we expect, economic conditions likely would make it appropriate at some point this year to raise the federal funds rate," Yellen said.