Canadian dollar and business outlook

By Commodity News Service Canada

WINNIPEG, May 30 The Canadian dollar weakened against its US counterpart on Monday, pressured by losses in crude oil and market speculation about a US interest rate increase.

The St. Louis Federal Reserve President, James Bullard, said global markets are well-prepared for an interest rate hike this summer from the US Federal Reserve, according to reports on Monday.

However, Bullard did not comment on whether or not the Fed would follow through on raising interest rates this summer, but the news was bearish for the Canadian dollar regardless.

At 8:43 a.m. CDT, the Canadian dollar was at US$0.7653 or C$1.3067 which compares with Friday’s North American close of US$0.7670, or C$1.3038.

New York Mercantile crude oil futures had lost US$0.14 to sit at US$49.34 a barrel, as of 8:43 CDT.

In Canadian domestic data, the Industrial Product Price Index (IPPI) declined 0.5 per cent in April, Statistics Canada said in a report on Monday.

The TSX was stronger in early activity, up 3.60 points at 8:43
a.m. CDT to sit at 14,108.83.