Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, August 16 (CNS Canada) The Canadian dollar strengthened against its US counterpart Tuesday morning, extending six straight sessions of gains.

The surge in oil prices, boosted by talk that Saudi Arabia could be open to efforts to curb the global supply glut, has supported the Canadian dollar.

The greenback also opened lower Tuesday morning following comments by New York Federal Reserve President William Dudley, where he alluded to an interest rate hike in September was possible, boosting the loonie.

Traders raised their expectations of a rate hike this year following Dudley’s comments, seeing a 12 per cent chance of a hike in September, up from nine per cent.

At 8:52 CDT Tuesday, the Canadian dollar was at US$0.7742 or US$=C$1.2917, which compares with Monday’s North American close of US$0.7766 or US$1=C$1.2877.

The TSX was down 58.63 points, or 0.39 per cent, at 8:52 CDT Tuesday morning to sit at 14,718.39.