Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, MB, September 9 (CNS Canada) The Canadian dollar weakened against its US counterpart Friday morning, falling with crude oil.

Oil prices dropped below US$49 a barrel on Friday, weighing on the Canadian dollar. However, prices were still set for their first weekly gain in three weeks after Russia and Saudi Arabia agreed to join forces to help rebalance the markets and a large drawdown in US crude stocks.

Canada added a net 26,200 jobs in August after two months of declines, according to Statistics Canada, limiting the loonie’s losses. Analysts only expected a gain of 14,000, according to reports.

Canada’s unemployment rate edged higher, from 6.9 per cent to seven per cent as more Canadians searched for work, matching market expectations.

At 8:56 CDT Friday, the Canadian dollar was at US$0.7669 or US$=C$1.3040, which compares with Thursday’s North American close of US$0.7735 or US$1=C$1.2928.

The TSX was down 129.44 points, or 0.86 per cent, at 8:56 CDT Friday morning to sit at 14,667.31.