Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, July 14 (CNS Canada) The Canadian dollar strengthened against its US counterpart Thursday morning, supported by the Bank of Canada’s decision to hold key interest rates steady.

The BoC kept the main interest rate at 0.50 per cent, saying the fundamentals are in place for a boost in economic growth but the global climate has become less certain, partially because of Britain’s decision to leave the European Union.

The Canadian economy is expected to lower during the second quarter due to wildfires in oil-rich Alberta. However, the BoC said stronger US demand and fiscal stimulus measures, along with the recovery from the fires, should boost growth later in the year.

At 8:51 CDT Thursday, the Canadian dollar was at US$0.7732 or US$=C$1.2933, which compares with Wednesday’s North American close of US$0.7701 or US$1=C$1.2986.

The TSX was up 5.16 points, or 0.04 per cent, at 8:51 CDT Thursday morning to sit at 14,498.96.