Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, August 17 (CNS Canada) The Canadian dollar weakened slightly against its US counterpart Wednesday morning, falling for the first time in a week along with crude oil.

Oil prices have risen nearly 20 per cent to their highest since early July after signs that top producers within and outside OPEC (Organization of the Petroleum Exporting Countries) were open to a deal on freezing output.

However, investors are starting to speculate on how successful these talks will be, and are growing doubtful that the freeze will happen, weighing on the Canadian dollar.

The greenback opened flat as investors await the release of the minutes of the US Federal Reserve’s July policy meeting, due Wednesday at 2:00 p.m. ET, limiting the loonie’s losses.

Interest rates were left unchanged at the US Federal Reserve’s meeting last month, but officials left the door open for a possible rate hike by the end of this year.

At 8:58 CDT Wednesday, the Canadian dollar was at US$0.7749 or US$=C$1.2905, which compares with Tuesday’s North American close of US$0.7780 or US$1=C$1.2853.

The TSX was down 47.17 points, or 0.32 per cent, at 8:58 CDT Wednesday morning to sit at 14,656.27.