Canadian dollar and business outlook

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The Canadian dollar was slightly firmer Monday morning, with gains in crude oil providing some underlying support to the energy-linked currency.

At 9:01 a.m. CDT the Canadian dollar was trading at US$0.7365 or US$1=C$1.3578, which compares with Friday’s close of US$0.7357 or US$1=C$1.3593.

Expectations that the United States Federal Reserve will likely cut interest rates at least three times over the next year weighed on the U.S. dollar while also boosting crude oil amid expectations that the falling rates will boost demand for. Mounting geopolitical concerns were also underpinning oil to start the week, with investors weighing the implications of recent Ukrainian attacks on Russian refineries and the ongoing conflict in Gaza.

West Texas Intermediate crude oil was up by 1.17 per cent at US$81.58 per barrel.

The TSX was firm, up by 30.84 points at 9:01 CDT to trade at 22,014.92 points.