Canadian Dollar And Business Outlook

By Commodity News Service Canada

Winnipeg, October 15 – The Canadian dollar corrected slightly higher Wednesday morning, after sinking to a 5-1/2 year low in early trading.

Low oil prices and worries over global economic growth sent many investors fleeing to the US dollar, said an analyst. Traders were also reportedly avoiding equities and currencies based around commodities.

The benchmark US Treasury yield stood at 2.15 percent, down from 2.3 percent at the end of last week.

On the commodity markets, the November crude oil contract fell $0.54 to US$81.30 a barrel. December copper fell three cents to US$3.06 a pound. December bullion dipped $4.10 to US$1,230.20 an ounce.

At 8:45 CDT Wednesday, the Canadian dollar was at US$0.8875 or US$=C$1.1268 which compares with Tuesday’s North American close of US $0.8845, or US$=C$1.1306.

The TSX was down 190.68 points Wednesday morning at 8:45 CDT, to sit at 14,036.68.