Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, July 20 (CNS Canada) The Canadian dollar weakened against its US counterpart Wednesday morning, as investors shied away from riskier assets and moved to the safe-haven US dollar.

The Canadian dollar is expected to be under further pressure as many analysts believe stronger US economic data will drive a broad rally in the greenback.

Speculation of US interest rate hikes by the end of the year has crept back into the market after strong US housing data released on Tuesday lifted the US dollar to a four-month high, weighing on the loonie.

At 9:04 CDT, the Canadian dollar was at US$0.7639 or US$=C$1.3091, which compares with Tuesday’s North American close of US$0.7676 or US$1=C$1.3028.

The TSX was down 24.25 points, or 0.17 per cent, at 9:04 CDT Wednesday morning to sit at 14,500.36.