Canadian dollar and business outlook

By Commodity News Service Canada

WINNIPEG, March 30 The Canadian dollar reached a 12-day high against its US counterpart in early activity on Wednesday, propped up by advances in crude oil.

Officials from the US Federal Reserve said they would be proceeding cautiously with interest rate hikes, which pressured the greenback and allowed the loonie to strengthen further.

At 8:48 a.m. CDT, the Canadian dollar was at US$0.7696 or C$1.2994 which compares with Tuesday’s North American close of US$0.7654, or C$1.3065.

At 8:48 a.m. CDT, New York Mercantile crude oil futures had gained US$0.82 to sit at US$39.10 per barrel.

In Canadian domestic data, Canadian general government expenses increased 1.4 per cent from 2013 to 2014, less than half the 2.9 per cent average growth rate seen since 2008.

The TSX was stronger in early activity, up 77.19 points at 8:48 a.m. CDT to sit at 13,503.42.