Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, March 26 – The Canadian dollar was stronger Tuesday morning, as reactions to the latest developments out of Cyprus supported the currency. Solid US economic data helped underpin the Canadian dollar as well.

At 9:30 CDT Tuesday morning the Canadian dollar was at US$0.9822 or C$1.0181 which compares with Monday’s North American close of US$0.9792, or C$1.0212.

The latest bailout package on the table in Cyprus, which will see cuts to the country’s banking sector and losses for uninsured depositors, weighed on the euro across the board. Canada’s banking sector is still thought of as being relatively secure, and Canada’s light exposure into Europe helped boost the Canadian dollar.

US housing and durable goods data released Tuesday showed improvements to the country’s economy, and the strength in Canada’s largest trading partner was also supportive for the currency, said analysts.

The TSX was weaker Tuesday morning, down 12.08 points at 9:30 CDT to sit at 12,668.63.