Canadian dollar and business outlook

By Commodity News Service Canada

WINNIPEG, February 23 The Canadian dollar weakened against its US counterpart on Tuesday, as crude oil futures lost ground with renewed over-supply concerns.

At 8:45 a.m. CST the Canadian dollar was at US$0.7259 or C$1.3776 which compares with Monday’s North American close of US$0.7293, or C$1.3712.

At 8:45 a.m., New York Mercantile crude oil futures had lost US$0.10 to sit at US$33.29 a barrel.

Some analysts say that even if oil producing countries are able to agree on a production ceiling, it will still not reduce the global supply glut, which added pressure to the commodity-linked Canadian dollar.

In Canadian domestic data, the volume of milk and cream sold declined 3.3 per cent from December 2014 to 248,633 kilolitres in December 2015, Statistics Canada said in a report on Tuesday.

The TSX was stronger in early activity, up 99.44 points at 8:45 a.m. CST to sit at 12,945.07.