Canadian Dollar and Business Outlook

By Commodity News Service Canada

WINNIPEG, May 26 (CNS Canada) – The Canadian dollar was stronger Thursday morning, as gains in crude oil provided some support.

At 9:22 CDT Thursday morning the Canadian dollar was at US$0.7724 or C$1.2947 which compares with Wednesday’s North American close of US$0.7679 or C$1.3022.

Crude oil was back above US$50 per barrel Thursday morning, hitting its strongest levels in ten months. The strength in crude oil was tied to production issues in a number of oil producing regions of the world; including Canada and Nigeria.

Currency traders were also still contemplating yesterday’s Bank of Canada interest rate announcement. The Bank left its key overnight rate unchanged, as expected, but noted that the Alberta fires could weigh on the country’s economy.

The TSX was stronger, up 47.25 points at 9:22 CDT to sit at 14,101.75.