Canadian Dollar and Business Outlook

By Commodity News Service Canada

WINNIPEG, March 1 (CNS Canada) The Canadian dollar was stronger Tuesday morning, as gains in crude oil and monetary policy changes out of China provided some support.

At 9:01 CST Tuesday morning the Canadian dollar was at US$0.7419 or C$1.3479 which compares with Monday’s North American close of US$0.7390 or C$1.3531.

China announced that it was adjusting its reserve ratio requirement, which would effectively free up more money in the country for lending purchases.

In domestic data, Statistics Canada reported that the country’s gross domestic product grew by 0.2% in the fourth quarter, after a 0.6% rise the previous quarter. On an annualized basis, the country’s GDP was up by 0.8% during the quarter, which compares with the 2.4% annual growth reported during the third quarter.

The TSX was stronger, up 52.15 points at 9:01 CST to sit at 12,912.50.