Canadian dollar and business outlook

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The Canadian dollar was slightly firmer Wednesday morning as updated inflation data out of the United States was seen as increasing the likelihood of interest rate cuts there.

At 9:40 a.m. CDT the Canadian dollar was trading at US$0.7297 or US$1=C$1.3704, which compares with Tuesday’s close of US$0.7287 or US$1=C$1.3723.

Annual inflation in the United States dipped to its lowest level in more than three years in July, with the 2.9 per cent year-on-year increase in consumer prices down from 3.0 per cent the previous month, according to a report from the U.S. Labor Department.

Crude oil was softer in early activity, with West Texas Intermediate crude oil down by 0.24 per cent at US$78.16 per barrel.

The TSX gained 13.58 points to hit 22,631.76 at 9:40 CDT.