Canadian dollar and business outlook

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The Canadian dollar was slightly firmer relative to its United States counterpart Wednesday morning, as gains in crude oil underpinned the energy-linked currency.

At 8:53 a.m. CDT the Canadian dollar was trading at US$0.7417 or US$1=C$1.3483, which compares with Tuesday’s close of US$0.7408 or US$1=C$1.3499.

Commercial crude oil stocks in the United States fell by 5.5 million barrels during the week ended March 8, according to initial data from the American Petroleum Institute. Expectations had been for a small increase. Forecasts from OPEC calling for increasing global oil demand over the next two years added to the strength in crude oil, despite ongoing uncertainty over the Chinese economy.

West Texas Intermediate crude oil was up by 2.22 per cent at US$79.28 per barrel.

The TSX was stronger, gaining 128.52 points at 8:53 CDT to trade at 21,959.54 points.