Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, June 28 (CNS Canada) The Canadian dollar strengthened slightly against its US counterpart Tuesday as investors take advantage of beaten down stocks after Britain’s vote to leave the European Union.

Canadian stocks finished lower on Monday, posting their second straight trading day of triple digit losses, but gained some support on Tuesday with a rebound in oil prices.

The rally is expected to be short-lived, however, as uncertainty over when and on what terms Britain will leave the EU is expected to cause instability in the next few weeks.

Global equities took a staggering dive on Friday, losing more than $2 trillion in market capitalization as investors sought out safer options such as gold and the Japanese Yen.

At 8:47 CDT Tuesday, the Canadian dollar was at US$0.7662 or US$=C$1.3051, which compares with Monday’s North American close of US$0.7649, or US$1=C$1.3073.

The TSX was up 150.50 points, or 1.10 per cent, at 8:47 CDT Tuesday morning to sit at 13,840.29.