The Canadian dollar firmed against most currencies in volatile trade, after the Bank of Canada cut interest rates a quarter point, compared with some market speculation of a half-point reduction. However, the currency's gains were limited as the central bank also gave a heavy hint of further loosening to come. At 14.20 GMT the US dollar was a touch weaker against its Canadian counterpart, at 1.0320 cad from around 1.0345 just before the announcement. The Canadian dollar was also firming against the euro, pound and yen. In its statement accompanying the rate cut decision, the BoC said further monetary stimulus is "likely to be required in the near term to keep aggregate supply and demand in balance and to return inflation to target over the medium term".