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 0.5per 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 at14,662.28.

U.S. stock markets fell slightly. Energy stocks sufferedas oil prices dropped more than two per cent in the face of adiplomaticaccord that couldeventually lift economic sanctions on Iran, allowing itto export more crude into a world market already awash with oil.

The Dow Jones Industrial Average lost 3.41 points to close at18,050.17.TheNasdaqComposite fell by5.95, closing at 5,098.94.The S&P 500 closed at2,107.40, 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.