Canadian dollar and business outlook

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The Canadian dollar was stronger Wednesday morning, as gains in crude oil and positioning ahead of an interest rate announcement from the United States Federal Reserve provided support.

At 8:39 a.m. CDT the Canadian dollar was trading at US$0.7303 or US$1=C$1.3693, which compares with Tuesday’s close of US$0.7264 or US$1=C$1.3767.

Economists generally expect the Fed will leave rates unchanged, diverging from the Bank of Canada and the European Central Bank that both lowered rates last week. However, the Fed is still expected to cut rates later in the year, and the accompanying statement will be followed closely.

Crude oil was underpinned by expectations for rising global demand, with West Texas Intermediate crude oil up by 1.59 per cent at US$79.14 per barrel.

The TSX was stronger, gaining 182.44 points at 8:39 CDT to trade at 22,069.78 points.