Canadian dollar and business outlook

By Commodity News Service Canada

WINNIPEG, Feb. 18 The Canadian dollar was stronger against the US dollar following the release of Canadian securities investment data Tuesday morning.

Statistics Canada reported that foreign investors reduced their holdings of Canadian securities by C$4.3 billion in December.

At 8:46 CST Tuesday the Canadian dollar was at US$0.9123 or US$=C$1.0961, which compares with Friday’s North American close of US$0.9105 or US$=C$1.0983. Canadian and US markets were closed for holidays on Monday.

Spillover support for the Canadian dollar came from the strength in commodity prices, including crude oil, gold and copper.

Expectations that Japan will increase monetary stimulus to improve the country’s economy also provided some support, analysts said.

The TSX was up 26.45 points, or 0.19%, at 8:46 CST Tuesday morning to sit at 14,081.21.