Canadian dollar and business outlook

Glacier FarmMedia | MarketsFarm — The Canadian dollar was slightly softer Wednesday morning in the immediate aftermath of the Bank of Canada’s latest interest rate cut.

The central bank announced a 50-basis-point cut to its key overnight rate, noting that it was “continuing its policy of balance sheet normalization.” The accompanying statement said additional rate cuts were expected, but the timing and pace of those reductions “will be guided by incoming information and our assessment of its implications for the inflation outlook.”

At 9:01 a.m. CDT the Canadian dollar was trading at US$0.7225 or US$1=C$1.3841 which compares with Tuesday’s close of US$0.7233 or US$1=C$1.3825.

Crude oil was softer, with West Texas Intermediate crude oil down by 0.57 per cent at US$71.33 per barrel.

The TSX was weaker in early activity, losing 40.56 points at 9:01 CDT to trade at 24,676.14.