Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, July 5 (CNS Canada) The Canadian dollar weakened against its US counterpart Tuesday morning, falling with crude oil prices and global growth worries.

Challenges continue in the wake of Britain’s vote to leave the European Union, creating worry in the market. The Bank of England said it would lower the amount of capital that banks were required to hold in reserve in order to allow continued lending post-Brexit.

Oil prices fell nearly three per cent as a potential economic slowdown weighed on demand prospects.

The US Commerce Department released data on Tuesday showing new orders for manufacturing fell by one per cent in May, after gains in the two prior months.

At 9:05 CDT Tuesday, the Canadian dollar was at US$0.7713 or US$=C$1.2965, which compares with Monday’s North American close of US$0.7778 or US$1=C$1.2856.

The TSX was down 78.87 points, or .55 per cent, at 9:05 CDT Tuesday morning to sit at 14,179.99.