Canadian dollar and business outlook

Glacier FarmMedia | MarketsFarm — The Canadian dollar was firm Wednesday morning as currency traders reacted to the latest policy decision from the Bank of Canada.

At 9:31 a.m. CDT the Canadian dollar was trading at US$0.6937 or US$1=C$1.4415 which compares with Tuesday’s close of US$0.6920 or US$1=C$1.4451.

Canada’s central bank lowered its key overnight interest rate by 25 basis points, taking it to 2.75 per cent. The cut was widely anticipated given recent strength in the Canadian economy. However, the accompanying statement also pointed to the uncertainty brought on by shifting tariff threats from the United States.

Crude oil was stronger in early trade, with West Texas Intermediate crude oil up by 1.66 per cent at US$67.35 per barrel.

The TSX was up by 75.12 points at 9:31 CDT to trade at 24,323.32.