Canadian dollar and business outlook

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The Canadian dollar was lacking any clear direction Wednesday morning as currency traders digested the latest policy announcement from the Bank of Canada.

At 9:17 a.m. CST the Canadian dollar was trading at US$0.7418 or US$1=C$1.3481, which compares with Tuesday’s close of US$0.7419 or US$1=C$1.3478.

The Bank of Canada left its key overnight rate unchanged at 5.0 per cent Wednesday morning, with the accompanying statement showing little sign of future hikes amid expectations for a slowing economy.

Crude oil was holding relatively steady Wednesday morning, with West Texas Intermediate crude oil up by 0.23 per cent at US$74.54 per barrel.

The TSX strengthened in early trade, rising by 49.73 points at 9:17 CST, trading at 21,078.48 points.