Canadian dollar and business outlook

By Commodity News Service Canada

WINNIPEG, May 25 The Canadian dollar was up slightly Monday morning, lacking any clear direction as US markets were closed for Memorial Day.

At 8:51 CDT Monday, the Canadian dollar was at US$0.8134 or US$=C$1.2294, which compares with Friday’s North American close of US$0.8129 or US$1=C$1.2301.

Sentiment that last week’s declines were overdone helped to underpin the Canadian dollar, as did expectations that the US Federal Reserve won’t raise interest rates next month.

However, weakness in crude oil values and ongoing nervousness about another possible interest rate cut in Canada limited the upside.

The TSX was down 27.18 points, or 0.18%, at 8:51 CDT Monday morning to sit at 15,173.58.